Before you start shopping for a home, you have to know what price range is right for you. Calculating the maximum loan you can afford to support will show you what you can realistically look into and where changes can be made to help you qualify for a larger amount.
Getting a mortgage loan allows you to afford the investment involved in buying a home or other large property. The property acts as collateral for the length of the loan, which is paid off along with interest in monthly installments. Also known as liens against property or claims on property, mortgage loans are available with different structures to fit within your current budget.
If you follow financial news, it may seem like mortgage rates fluctuate with no apparent pattern. There’s plenty of talk about the housing market, the economy and official interest rates, but it can be hard to understand how these relate to what banks are charging. Although there are many factors involved, a few key metrics influence when and how mortgage rates change.