Written by Darren Morris
Mortgage Buying Power:
It may seem complicated, but doesn't have to be:
When you pay your monthly mortgage payment, some of it goes to interest and some goes to principal.
Here's one example:
- Let's say you are at a 4% interest rate, and you can only afford a $2,000/month payment. This means you can afford a house that is $379,000.
- What happens if you can get down to 3% interest? Now, with that same $2,000/month, you can afford a house that is $414,000. That's is HUGE!
So, as you can see, just this very small drop (1%) interest could mean the difference in a better location, more updates, a bigger yard-the possibilities are endless!
This could be the perfect time for you to buy a house. In…