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Small changes in interest rates can reduce your borrowing power by as much as 10%.If you’re a homebuyer, small changes in interest rates can have a dramatic effect on how much money you can borrow.  For example, let’s assume you want to maintain a monthly mortgage payment of approximately $1,150. Let’s also assume you want to take a 30-year loan. At an interest rate of 4%, you can borrow about $240,000.  If that interest rate rose from 4% to 5%, your loan amount, to maintain the same monthly payment, would decrease to approximately $215,000. That’s an 11% to 12% reduction in borrowing power—all because of a tiny 1% rise in interest rates. This is a lesson I tell all my clients.This is a lesson I impart to all my clients, so beware of small changes in interest rates and how they impact your purchasing power.   If you’re in the market to buy or sell a home, I would love the opportunity to earn your business, so don’t hesitate to reach out to me. I look forward to speaking with you.