Let’s recap the mortgage rates that have been on since November, how it impacts affordability, and how can you qualify for the best homes in Brookline, MA.

The 2017 rates
Mortgage rates rose 0.75 percent between the election and Christmas time last year, driven by a belief that the new administration’s proposed policies of infrastructure spending, tax cuts, and deregulation would be inflationary if enacted.

Rate volatility will continue as investors and the Federal Reserve try to predict rate direction under the new administration, so let’s see how it impacts your home-buying plans.

Impact On Affordability:
On a $350,000 home purchase with 20 percent down, a rate spike of 0.5 percent reduces the home price you can afford by about $17,000.

Majority of mortgage lenders use a debt-to-income (DTI) ratio to qualify you, meaning they divide your bills (for housing, car payments, credit cards, etc.) by your income to get a percentage of how much of your monthly income you spend on bills.

Increased home affordability:
Instead of reducing your price by $17,000, you can reduce your other non-housing bills to purchase luxury condos for sale in Brookline MA.

The Bottom line:
Don’t just automatically assume rising rates push down the price you qualify for.

Our team of agile real estate agents will help examine your full financial profile and goals and help you find homes for sale in Brookline, MA that suit your requirements, and then dive into the math to find solutions for you.