What Interest Rates Mean for Your Mortgage
Posted by Sales Manager on
As a prospective homebuyer in The Bahamas, understanding how interest rates influence your purchasing power is crucial. Interest rates play a significant role in determining the cost of borrowing money for a mortgage.
Here's a straightforward breakdown of how they can affect your ability to buy a home:
1. Mortgage Affordability
Interest rates directly impact your monthly mortgage payments. When rates are low, the cost of borrowing decreases, making homes more affordable. For example, a lower interest rate on a $300,000 mortgage can result in significantly lower monthly payments compared to a higher rate.
2. Purchasing Capacity
Higher interest rates mean higher monthly payments for the same loan amount. This can reduce your…
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