Mortgage rates rise and home prices rise not even sure what the difference is between the two. How does this affect my chances of buying my new home? I don’t really get Real Estate jargon and I’m terrified of getting scammed.
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It really all boils down to your monthly payment. Your monthly payment is going to be the sum of interest (affected by the interest rate) and principle (affected by the home price). Mortgages are typically 30 year or 15 year, so your monthly payments would be adjusted accordingly.
Experts say that a mortgage monthly payment should not exceed 25% of your take home pay. Keep in mind that while rent can be more expensive than a mortgage, renters are typically not supposed to pay for maintenance of the home.
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