Zillow Home Loans is introducing a new tool that helps borrowers assess how much home they can afford.
The new tool, BuyAbility, gives buyers a personalized, real-time estimate of the home price and monthly payment that fits within their budget, and then gives insight into the likelihood of qualifying for a loan, Zillow Home Loans says in a release.
Powered by real-time mortgage rates from Zillow Home Loans, the tool helps buyers understand what they can afford, giving them the information they need to make educated decisions.
The interplay between mortgage rates and a buyer’s credit score are important factors in determining affordability, but most calculators don’t factor this in.
Buyers just need to add a few simple inputs unique to their financial situation, such as income, credit score and the monthly amount they’re comfortable spending, into BuyAbility.
Within seconds, a personalized, real-time estimate of the home price and monthly payment that fits within their budget pops up, along with insight into their likelihood of getting approved for a mortgage at this price point.
“What many people don’t realize is that your mortgage rate is highly dependent on your credit score,” says Orphe Divounguy, senior economist at Zillow Home Loans, in the release. “The better your credit score, the lower the rate you’ll qualify for, potentially saving you hundreds of dollars a month.”
“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 says. “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.”
Photo: Annie Spratt