3 ms·
You have the mechanism right but I think you draw the wrong conclusion. Your max amount changes with interest rates. So if interest rates rise your max amount
by projectramo 8y ago
You have the mechanism right but I think you draw the wrong conclusion.
Your max amount changes with interest rates. So if interest rates rise your max amount goes down for the same payment and house prices go down.
- phkahler 8y ago>> Home prices vary inversely with interest rates. That's exactly what I said. inversely means opposite.
- projectramo 8y agoWell then this is just false: “Ultimately your payment is determined in step 3 and has nothing to do with interest rates or home prices.” You can’t have it both ways.