08/31/2026
🏡 HOW MUCH HOME CAN YOU REALLY AFFORD?
Why Your Monthly Payment Matters More Than the Purchase Price
When you’re buying a home, it’s easy to focus on one number: the purchase price.
But two homes with the exact same price can have very different monthly payments.
Your interest rate, property taxes, HOA fees, homeowners insurance and financing incentives can all significantly affect what you actually pay each month.
That’s why I encourage buyers to start with a comfortable monthly payment and work backward from there rather than simply asking, “What’s the most expensive home I can qualify for?”
🏡 Existing Homes: Look Beyond the List Price
Buying an existing home can offer more opportunities to negotiate than many buyers realize.
Depending on the property and current market conditions, you may be able to negotiate seller concessions that can help cover closing costs or be used toward an interest-rate buydown.
Taxes and HOA fees matter too. Sometimes a higher-priced home with lower taxes and HOA fees can have a monthly payment surprisingly close to a less expensive home with higher carrying costs.
This is especially important as you move into higher price points, where relatively small differences in interest rate and monthly expenses can add up quickly.
🏗️ Don’t Rule Out New Construction
New construction is another option worth comparing—even if the purchase price initially looks higher than what you planned to spend.
Builders often offer financing incentives that you typically won’t find on a resale home. Depending on the builder and community, these may include below-market interest rates, closing-cost assistance, rate buydowns or other incentives.
A significantly lower interest rate can sometimes allow you to purchase a higher-priced home while keeping the monthly payment closer to your target.
That’s why it’s important to compare the total monthly cost instead of simply comparing sticker prices.
🇺🇸 VA Buyers: Consider an Assumable Loan
If you’re eligible for VA financing, there’s another opportunity you shouldn’t overlook: VA assumable loans.
Instead of obtaining an entirely new mortgage at current market rates, a qualified buyer may be able to assume a seller’s existing VA mortgage—including its existing interest rate.
There are still homeowners with VA mortgages carrying rates in the 2%, 3% and 4% range. Depending on the loan balance and purchase price, assuming one of these mortgages could create significant monthly savings.
VA assumptions do have additional considerations, including the difference between the seller’s remaining loan balance and purchase price (the assumption gap), qualification requirements and a little longer closing timeline.
But when the numbers line up, a VA assumption can be an excellent opportunity.
💰 Shop by Monthly Payment, Not Just Price
Whether you’re looking in the $500Ks, $700Ks, $900Ks or beyond, don’t automatically rule a home in or out based solely on its asking price.
The right combination of interest rate, property taxes, HOA fees, seller concessions, builder incentives or an assumable mortgage can completely change the numbers.
If you’re considering buying a home in the Denver metro area, I’d be happy to help you compare resale homes, new construction, financing incentives and VA assumable opportunities to determine what makes the most sense for your goals and budget.
📲 Call or text: 303-829-0902
Tina Cameron, REALTOR®
Keller Williams Realty DTC
🏆 RealTrends Verified | Top 1.5% Nationwide
