What Price Range Can I Afford With Today’s Interest Rates?
If you’re thinking about buying a home right now, one of the first (and most important) questions is: what price range can I actually afford with today’s interest rates?
With rates higher than they were a few years ago, affordability looks different—but that doesn’t mean buying is off the table.
Here’s how buyers in the Charlotte, Concord, and surrounding Cabarrus County areas should be thinking about price range today.
Start With a Monthly Payment, Not a Home Price
The biggest mistake buyers make is shopping by purchase price instead of monthly payment.
Your monthly payment typically includes:
Principal & interest
Property taxes
Homeowner’s insurance
HOA dues (if applicable)
Most lenders recommend keeping your total housing payment around 25–30% of your gross monthly income, though some buyers are comfortable going slightly higher depending on lifestyle and other debts.
How Interest Rates Impact Your Buying Power
Interest rates directly affect how much home you can afford - sometimes more than the price itself.
For example:
A higher interest rate may reduce your buying power by $30,000-$75,000 compared to lower-rate environments.
Even a small rate change can shift your monthly payment by hundreds of dollars.
That’s why two buyers with the same income can qualify for very different price ranges depending on rate, credit score, and down payment.
A Realistic Local Example
Let’s say a buyer is comfortable with a monthly payment around $2,500.
Depending on:
Current interest rates
Down payment amount
Taxes and insurance in areas like Concord, Kannapolis, or Huntersville
That payment could translate to a purchase price somewhere in the mid-to-high $300s or low $400s. This is why getting local numbers matters - property taxes and HOA fees vary widely by neighborhood.
Down Payment Isn’t the Only Factor
Many buyers assume they need 20% down to afford a home. In reality:
There are loan options with 3-5% down
Some programs allow down payment assistance
Putting more down lowers your payment, but it’s not always required
The right strategy depends on whether you want to preserve cash or minimize monthly expenses.
Why Online Calculators Aren’t Enough
Online affordability calculators are a starting point - but they don’t account for:
Local tax rates
Insurance costs
HOA dues
Loan programs specific to North Carolina
A personalized breakdown is the only way to know your true buying power.
The Bottom Line
With today’s interest rates, affordability is less about stretching your budget and more about strategic planning. Buyers who focus on monthly payment, explore loan options, and stay flexible on neighborhoods often find opportunities others miss.
If you’re wondering what price range makes sense for you, a quick, no-pressure conversation can bring a lot of clarity.
