How Much More Home Can You Get With A Lower Mortgage Rate?

Mortgage rates below 4%, compared to 4.57% a year ago, are allowing homebuyers to get more home for the same monthly payment, according to Forbes.

Thanks to 30-year mortgage rates hovering below 4% buyers can afford more home even in areas with rising listing prices. “According to realtor.com, buyers who spend $1,500 on monthly mortgage payments can afford to purchase a $402,500 home this year, compared to $367,500 last year when mortgage rates were 4.57 percent.

Danielle Hale, Chief Economist at realtor.com explains it. “Last year, buyers would have needed to spend an additional $145 a month on top of the $1,500 to afford a $402,500 home.”

In Alabama this year you can get a 3,138 square foot home on a Robert Trent Jones Golf Course with hardwood flooring and screened in porch overlooking the golf course for a listing price of $405,000. Last year you would have paid $367,500 for a home with 2,947 square feet, not on a golf course.

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