Smart home buyers know that it’s not the price that matters; it’s the monthly payment. To help buyers find a home that fits their monthly budget within a rapidly changing market, Zillow will launch a filter that find homes within a range of all-in monthly costs, instead of list prices. This monthly cost includes principal and interest, as well as estimates for insurance costs, taxes and HOA fees, clarifying a chief source of confusion for buyers.
A linked calculator estimates monthly payments they could afford, based on users’ down payment, income and monthly debts.
Last year’s drastic rise in mortgage rates sent monthly costs for home buyers skyrocketing — nearly $700 more than the year before in recent months — and are now $431 higher than in March 20221. High rates andf record-breaking home appreciation have nearly doubled monthly mortgage costs since 2020.
“Shoppers looking at list prices struggle to figure out what they can really afford, because the mortgage rate is what makes or breaks a monthly payment. Adding in costs like taxes, insurance and HOA fees can quickly bust a shopper’s budget,” said Amanda Pendleton, consumer finance expert at Zillow Home Loans. “This new search tool does the math, so shoppers can confidently jump into finding a home they love and can afford.”
Shoppers can start with Zillow’s linked affordability calculator, entering their down payment amount, income and debts to estimate the monthly mortgage cost they can afford. Then they enter their monthly budget range into the filter to start shopping. Updated mortgage rates feed into the filter, showing homes and hiding others to keep shoppers on budget as rates and price cuts change the monthly payment math.
The new filter — coming soon to zillow.com — is the latest Zillow technology helping buyers navigate a challenging affordability landscape.
