Realtor.com Releases Home Affordability Tool For Consumers

Abstract

Industry News Realtor.com Releases Home Affordability Tool For Consumers Katie Jensen Aug 04, 2022 More than two-thirds of shoppers were surprised by what they could actually afford for their first home. Realtor.com has introduced a new buying power tool to help home shoppers see whether a specific home is "Affordable," "a stretch," or "Out of reach." To give buyers a more objective view of their budget, the tool uses a home shopper's specific financial details, current mortgage rates, taxes, insurance, and HOA fees to determine if the monthly payments will be comfortable. Recent surveys found that more than two-thirds of shoppers were surprised by what they could actually afford for their first home. "There is nothing more disappointing than falling in love with a home only to realize that you can't afford it, and nothing more exciting than realizing you can afford that dream home," said Colleen Coyle, vice president, product management, for Realtor.com. "However, there are many factors that go into affordability. We introduced this tool to help shoppers better understand how much home they can afford and if specific homes fit their budget given their personal financial situation. This tool is especially important right now with rising interest rates - which can add hundreds of dollars to monthly payments and impact buying power." A home's affordability depends on much more than asking price. The new buying power feature allows home shoppers to input their monthly income, debt payments, and savings to determine their budget. Users can save this information to their buyer profile and then search for homes that fit their budget.