The point is that you have more purchasing power with lower income rates. In this example you can buy a house worth 25% more. Pretty much all home buying decis

The point is that you have more purchasing power with lower income rates. In this example you can buy a house worth 25% more. Pretty much all home buying decisions are normalized on a 30 year fixed mortgage. When figuring out what you can spend its easier to figure out what you can afford per month ans extrapolate your purchase price from there. For that matter most car buying decisions are done the same way based on a five year loan (maybe seven these days).