How Interest Rates Impact Your Buying Power

Interest rates are a critical factor in your buying power. A slight change in rates can mean thousands of dollars over the life of a loan and may even impact the types of homes you can afford.

Understanding Buying Power
When interest rates are low, you can afford a higher loan amount for the same monthly payment. Conversely, when rates rise, your purchasing power diminishes, potentially limiting your options.

The Cost of Waiting
Many buyers delay their home search to wait for lower rates, but rates can fluctuate unpredictably. If prices increase while you wait, any rate savings may be offset by higher home prices.

Fixed vs. Adjustable Rates
Choosing between a fixed and adjustable-rate mortgage can impact your monthly payment and long-term costs. Fixed rates provide stability, while adjustable rates can offer initial savings with the potential for increases later.

Consulting with a local mortgage expert can help you explore options that maximize your buying power, no matter the interest rate environment.

Tanner Garver with Fairway Independent Mortgage is the BEST local lender. Reach out to him if you ever need anything mortgage related or have any questions!