How Much Home Can I Afford at Current Mortgage Rates?

At a 6.5% interest rate, a $300,000 home with a 20% down payment ($60,000) and a $240,000 loan has a monthly payment of approximately $1,796 (principal and interest). At 7.5%, that same home costs $1,976 per month. Rates have a significant impact on affordability.

A good rule of thumb: for every 0.5% change in mortgage rates, your monthly payment changes by roughly $55-$65 per $100,000 borrowed. So on a $300,000 loan, a 1% rate increase adds about $200 per month to your payment.

Your actual affordable price depends on your income, existing debts, down payment, and the specific rate you qualify for. Getting pre-approved gives you a clear number to work with.