Interest rates have a massive impact on home affordability. Even a half-percent increase can strip thousands of dollars from your purchasing power. Enter your maximum comfortable monthly payment below to instantly see how much house you can afford across different interest rate scenarios. This tool helps you set realistic expectations and understand why "marrying the house and dating the rate" is a common strategy in fluctuating markets.
Budget Details
Buying Power by Interest Rate
| Rate | Max Home Price | P&I Payment | Full PITI | vs Baseline |
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Frequently Asked Questions
Why does a 1% rate increase reduce buying power so much?
Mortgages span 15 or 30 years, so interest compounds significantly. When rates rise by just 1%, your monthly payment increases. If your monthly budget is fixed, the only way to keep the payment the same is to borrow less money, drastically lowering your maximum home price.
What does PITI mean?
PITI stands for Principal, Interest, Taxes, and Insurance. It represents your total monthly housing obligation. Lenders qualify you based on PITI, not just the principal and interest payment.
Should I wait for rates to drop to buy?
While lower rates increase your buying power, waiting can be risky. If rates drop significantly, buyer demand often surges, driving home prices up and potentially offsetting the savings from the lower interest rate.