Did you know that lower interest rates can equate to a larger house?

Yes, they can!  You hear all the time about how it’s a great time to buy because interest rates are at all time lows. 

So exactly how does a low interest rate benefit you?  One of the things buyers hear is that a low interest rate can mean a lower house payment, but it also means you can potentially buy a larger home.

For example, let’s say you want to keep you house payment (principle and interest only) at $600.  At previous interest rates of 6% this would mean you were looking at a house in the $100,000 range.  In today’s market with interest rates of 3.75% (for a 30 year fixed rate loan with 5% down payment) you could potentially be looking at houses closer to the $130,000 range.

Of course this is assuming you have your credit score in good shape and can afford the payments with your existing expenses.  I am not suggesting that you more house than you can afford.  But buyers should be aware that interest rates can work towards your advantage.

One final note, interest rates are starting to inch upwards, talk with your local lender to lock in your rate today.  This is one more reason why now is a wonderful time to buy a home!!