Lower mortgage rates can significantly impact your buying power.

Waiting for the right moment to buy a home? Now may be the time to make a move. Mortgage rates have dropped notably recently and are likely to drop even more. But what does this really mean for you?

First, a drop in rates means lower monthly payments. For example, if you get a home loan for $400,000 at a fixed rate of 7%, your estimated monthly payment would be over $2,600. That same loan payment with a 6.5% mortgage rate would drop to around $2,500. And at a 6% rate, your monthly payment would be under $2,400—an over $200 monthly savings.

Second, rate drops also impact how much home you can afford. The general rule is that for every 1% drop in mortgage rates, buyers gain about $10,000 to $15,000 in buying power. That means over the last three months, homebuyers have gained anywhere from $20,000 to $40,000 in purchasing power.

So if you couldn’t find the home you wanted that fits your budget in June, you may be able to afford one now.

So if you couldn’t find the home you wanted for $300,000 in June, you may be able to afford one now. And with inventory slowly increasing in the Richmond Metro area, now might be the time to jump back into the market.

For a detailed discussion about your specific needs and whether now may be the time to make a move, contact us today at (804) 527-3948 or Marc@MarcsHome.net. Our team will listen to your situation and provide no-pressure information to help you decide best.