How Rising Rates impact buying power

Click this above report to show details on how our recent shift in the price of mortgage financing impacts buyers.
The first option starts with an illustration of a $600k purchase in January of 2022 at an interest rate of 3.5%. You can see the total cash to close + the total estimated monthly payments
The second option shows what happens to the purchase price at a rate of 5.25% (which is where we went in spring of 2022) - If we were constrained to the same bottom line cash to close and the same monthly payment, the purchase price is reduced from $600k >> down to $500k - $100k reduction in buying power.
The third options shows the same thing based on rates available in June of 2022 post fed rate increase. Again, if we were constrained to the same cash down + same basic monthly payment we are looking at a total PURCHASE PRICE of $470k.
A total reduction in potential buying power of $130k. The same dollars in June afford you a property of $470k, that would have bought you a $600k property in January.
The 4th option shown is simply what that same $600k purchase looks like today vs January. The impact of the increased rate is over $800 per month for that property now.

Reviews

"I can’t believe how many times James has helped me to understand my options for buying a home. I have called him several times over the years and asked him to give me options for home buying and to simplify my loan options. I always hang up feeling very grateful for the time, the patience and the choices he comes up with. James looks at the big picture and explains every detail I need to make an informed decision. He listens and makes the world of home buying not so complicated. I would recommend James Adair to anyone. He is a master communicator. He is kind and very knowledgeable."

tracy livermore

"James and Jessica did a great job, and fit perfect for me as a first time home buyer. James discussed multiple options and helped me find a loan package that balanced both long term wealth with near term affordability. James helped me to understand the mortgage process more thoroughly, and even screenshared the exact interface that he used to lock in rates. To top it off, he attended closing with me at the escrow office and participated real time with questions I had on the final documents. 10/10 - would make a large financial decision with them again"

robert holt

"James has guided me through two home purchases. He connected me with the real estate that he felt would fit the property type I was looking for, which has also been a great success. He and his team make the home buying process a breeze."

n warren