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Interest rates are dropping, and that’s good news for your wallet! Lower rates mean lower monthly payments, which can help you afford more home.
Right now, rates are hovering around 6.5%—the lowest we’ve seen in over a year—and they might keep going down!
If buying a home is on your list this year, here’s a quick look at what kind of income you might need:
✔️ At a 7.5% interest rate, you’ll need about $101,000 in household income.
✔️ At a 5.5% interest rate, you’ll need around $87,000.
I based this on:
An average home price of $420k
7% down payment
$400 in monthly debt
$5,300 / Yr in taxes and insurance
Assuming a 45% debt-to-income ratio
Keep in mind, this is a simplified example, so if any of these numbers change, what you can afford will change too!
This isn’t a suggestion on what you should spend—just a way to show how interest rates affect your buying power.
–> If you’re curious to learn more, Comment the word “GUIDE” and I’ll send you an invite to a FREE Zoom consultation where you’ll learn how to navigate the current market challenges and discover how to avoid costly mistakes!

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