“What many people don’t realize is that your mortgage rate is highly dependent on your credit score,” Orphe Divounguy, senior economist at Zillow Home Loans, said in a media release. “The better your credit score, the lower the rate you’ll qualify for, potentially saving you hundreds of dollars a month.”
To use BuyAbility, homebuyers simply enter a few details about their finances, such as income, credit score and desired monthly payment. The tool then instantly provides a personalized home price and payment estimate along with the likelihood of mortgage approval at that level.
The affordability calculation will update regularly as mortgage rates and the buyer’s credit score changes. For example, a small rate increase from 6% to 7% could reduce a median-income household’s affordable home price from $420,000 to $380,000.
“BuyAbility is personalized to a buyer’s credit score, income and down payment, and updated regularly to reflect current mortgage rates, giving home shoppers a true understanding of their buying power,” Divounguy said. “BuyAbility is a great starting point for buyers who may be hesitant to look under the hood of their finances or share personal details with a loan officer.”
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