Realities and Myths of Owning a Home

Reality: Low Interest Rates Help

10. Reality: Low Interest Rates Help

During low-interest-rate environments, buying a home is far more affordable for most individuals who are otherwise well-qualified. A significant portion of your monthly mortgage payment is the interest due on your loan, especially during the first few years of homeownership. When interest rates are low, the total cost of borrowing for your home purchase is less than when interest rates are high. Borrowers with strong income, credit history, and few other debt obligations are most likely to receive the lowest interest rates available on a new home purchase.

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