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.
In: 20
Home prices are the price you agree to pay for the house, like the price tag on something at the store. Mortgage rate is how much the bank charges you in interest on the loan to pay for the purchase of the house. The higher the interest rate on teh mortgage, the more you pay in interest over the life of the loan, which makes your monthly payments higher. Both play into how much you’ll need to pay for a house each month. The purchase price being higher also affects the down payment, which is usually a percentage of the purchase price. Higher price = higher down payment.
Latest Answers