09/05/2026
๐ก Same income. Same down payment. Different rate. Different buying power. ๐๐
A 1% change in your mortgage rate can make a surprisingly big difference in how much home you can afford.
In our example:
๐ฐ $90,000 household income
๐ฆ $20,000 down payment
๐ $0 monthly debt
๐
30-year mortgage
At 5.71%, estimated affordability is about $283K
At 6.71%, about $261K
At 7.71%, about $242K
Thatโs roughly $19,000 less buying power when the rate rises by 1%. ๐ฎ
The takeaway? Donโt look at home price alone โ your mortgage rate can change the picture dramatically.
๐ Use the WikiBudget Mortgage Affordability Calculator to see what a 1% rate change does to your budget.
๐๐ https://wikibudget.com/1-percent-mortgage-rate-affordability/