06/11/2026
🏡 Price isn't everything when purchasing a home!
💰💥 Here is an Example Comparison of higher-priced home with lower interest rate & lower-priced home with higher interest rate - helpful info for those still on the fence!
Assuming:
30-year fixed mortgage
10% down payment
Principal & Interest only (excluding taxes, insurance, HOA)
Scenario Home Price Interest Rate Loan Amount Monthly
Higher-Priced Home $350,000 5.50% $315,000 ~$1,987
Lower-Priced Home $315,000 6.75% $283,500 ~$2,043
🔑🔑 Key Takeaway for Buyers:
A lower interest rate can make a higher-priced home surprisingly affordable. While the purchase price may be higher, the reduced borrowing cost can create a monthly payment similar to—or even lower than—a less expensive home with a higher interest rate.
Buyer Tip: Don't focus only on the sales price. Always compare the monthly payment and total cost of financing when deciding which home offers the best value.
Many buyers assume a lower-priced home automatically means a lower payment. Not always.
A $350,000 home with a 5.5% interest rate can have a monthly payment very similar to a $315,000 home at 6.75%. (See chart below)
💡 The interest rate matters just as much as the purchase price when determining affordability.
Want to see what your buying power looks like in today's market? Let's talk! 📲 972.482.5125
— Dana Dahlen, REALTOR® | RE/MAX GO®
