Buying a home is one of the biggest financial decisions that most people make in their lifetime. Interest rates play a major role in determining the affordability of a home, and rising interest rates can have a significant impact on a buyer’s purchasing power. In this article, we will discuss the ways in which rising interest rates impact home buying power and offer tips for buyers to maintain or increase their buying power.
Mortgage Interest Rates
When you borrow money from a lender, you typically have to pay back not only the principal amount borrowed, but also an additional amount called interest. Interest is essentially the cost of borrowing money, and it is calculated as a
How Do Mortgage Lenders Use My Credit Report When Buying a Home?
When purchasing a home, a credit report is an important tool that lenders use to determine the borrower’s creditworthiness. A credit report is essentially a detailed report of a person’s credit history, which includes information about their borrowing and repayment history, current debts, and other financial information.