Finance & Tax
How do interest rates affect my buying power?
Quick answer
Rates set the monthly payment, and a small change moves your price range by thousands. A half-point rate change can shift buying power by roughly 5 percent.
The full answer
More detail, straight from Julian Cesar
Rates set the monthly payment, and a small change moves your price range by thousands. A half-point rate change can shift buying power by roughly 5 percent. That is why pre-approval and rate locks matter: they pin down the number you can plan around. Julian Cesar works with trusted local lenders who explain rate options in plain English.
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More Finance & Tax questions
Do I have to pay capital gains tax when I sell my home?
Most homeowners do not. If you have lived in the home two of the past five years, you can exclude up to $250,000 of gain, or $500,000 for married couples filing jointly.
Read the answer Finance & TaxHow do property taxes work for a new buyer in California?
In California, your property tax base resets to the purchase price when you buy. The typical base rate is about 1 percent, plus voter-approved local bonds and assessments.
Read the answer Finance & TaxWhat is PMI and can I avoid it?
PMI, private mortgage insurance, protects the lender when you put down less than 20 percent. You avoid it with a 20 percent down payment or by choosing a lender-paid or piggyback structure.
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Julian Cesar
Licensed Agent, CA DRE #02015349