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How Interest Rates Impact Your Home Buying Budget

Angela Medley October 28, 2025

How Interest Rates Impact Your Home Buying Budget 📉🏡

 

When it comes to buying a home, interest rates play a bigger role than most buyers realize. Even a small change in the rate can significantly affect your monthly payment and the overall affordability of a property.

 

For example, a 1% increase in rates could mean paying hundreds more each month — which might change the price range you can comfortably shop in. On the flip side, when rates dip, buyers often gain more purchasing power, allowing them to explore higher-priced homes without stretching their budget.

 

Understanding how rates impact your mortgage is key to making confident, informed decisions. That’s why it’s important to stay connected with a trusted lender and real estate agent who can guide you through different scenarios and keep you on track toward your dream home.

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