While it can be easy to focus on the overall price of a home, it’s wise not to underestimate the power of the interest rate. We’re here to give you the run-down.

Picture this: You find your dream home! It’s $500,000 and your interest rate is 6.99% - Your builder offers you a $20,000 incentive to be applied toward the overall purchase price or an interest rate buy down to 5.99%. 1% may not seem like a lot, but take a look below to see how these different scenarios would affect your overall down payment, monthly payment, etc.

No Incentive Scenario (Keeping your interest rate at 6.99%)

Purchase Price: $500,000

Interest Rate:6.99%

Down Payment: 20% = $100,000

Approximate Monthly Payment:$2,659*

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Lowered Purchase Price with $20,000 Incentive Scenario

Purchase Price: $500,000 - $20,000 = $480,000

Interest Rate:6.99%

Down Payment: 20% = $96,000

Approximate Monthly Payment:$2,552*

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Lowered Interest Rate with Rate Buydown Scenario

Purchase Price: $500,000

Interest Rate:5.99%

Down Payment: 20% = $100,000

Approximate Monthly Payment:$2,395*

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Lowered Interest Rate Incentive with Hartford Homes (3.99%)

Purchase Price: $500,000

Interest Rate:3.99%

Down Payment: 20% = $100,000

Approximate Monthly Payment:$1,907*

*Does not include HOA, PMI or Taxes

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Ultimately, a one percent decrease in your interest rate can save you hundreds on your monthly paymenteach month! Curious about what this could mean for you? Check out our current3.99% Interest Rate Incentiveand connect with our lender, Harmony Home Lending, to make saving thousands on your dream home a reality!