New Zillow Home Loans tool addresses home buyers' biggest concern: affordability
Zillow Home Loans introduces BuyAbility, a new tool that helps buyers understand what they can afford by combining real-time mortgage rates with credit score and income. This tool provides personalized estimates of home price and monthly payments, giving insight into loan qualification likelihood. BuyAbility aims to empower buyers to make informed decisions about homeownership.
BuyAbility provides personalized, real-time estimates of home price and monthly payments based on a buyer's financial situation, helping buyers make informed decisions.
BuyAbility takes into account mortgage rates, credit score, income, and monthly budget to determine affordability, offering insights into loan approval chances.
BuyAbility allows buyers to easily understand their buying power, track changes in mortgage rates, and adjust their home price affordability accordingly.
BuyAbility is exclusive to Zillow, potentially limiting access for buyers who prefer other platforms for their home search.
BuyAbility's accuracy is dependent on the real-time mortgage rates from Zillow Home Loans, which may vary and impact the estimates provided to buyers.
BuyAbility, an innovative new tool from Zillow Home Loans, combines real-time mortgage rates with a buyer's credit score and income to determine a home price comfortably within budget
BuyAbility is a new way for buyers to understand what they can afford, giving them the information they need to make educated decisions about where they call home. The interplay between mortgage rates and a buyer's credit score are important factors in determining affordability, but most calculators don't factor this in. Buyers just need to add a few simple inputs unique to their financial situation, such as income, credit score and the monthly amount they're comfortable spending, into BuyAbility. Within seconds, a personalized, real-time estimate of the home price and monthly payment that fits within their budget pops up, along with insight into their likelihood of getting approved for a mortgage at this price point.
Buyers can get started on the Home Loans tab on Zillow's app1. A shopper's BuyAbility calculation will update regularly with changes to mortgage rates and their credit score.
"What many people don't realize is that your mortgage rate is highly dependent on your credit score," said Orphe Divounguy, senior economist at Zillow Home Loans. "The better your credit score, the lower the rate you'll qualify for, potentially saving you hundreds of dollars a month. BuyAbility is personalized to a buyer's credit score, income and down payment, and updated regularly to reflect current mortgage rates, giving home shoppers a true understanding of their buying power. BuyAbility is a great starting point for buyers who may be hesitant to look under the hood of their finances, or share personal details with a loan officer."
If mortgage rates change, it impacts the home price a buyer can afford and their likelihood of getting approved for a mortgage, and BuyAbility will adjust for this in real-time. For example, a median-income household would be able to afford a
BuyAbility will change the way people shop for homes. Later this year, Zillow Home Loans will make it possible for buyers to shop for homes on Zillow using their BuyAbility — rather than a price range — allowing them to quickly identify homes that truly fit their budget. And since most people think about their finances in terms of monthly budgets, buyers will soon be able to see how much each home they look at on Zillow would cost them on a monthly basis, based on their BuyAbility.
BuyAbility is an innovation only Zillow Home Loans could accomplish, personalizing Zillow's world-class shopping experience with a buyer's unique financial data and real-time mortgage rates from Zillow Home Loans.
About Zillow Group:
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in
Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce® and Follow Up Boss®.
All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a Zillow affiliate.
(ZFIN)
__________________________
1 Available on iOS only, with Android launching later this year.
2 Assuming fixed rates and a
View original content to download multimedia:https://www.prnewswire.com/news-releases/new-zillow-home-loans-tool-addresses-home-buyers-biggest-concern-affordability-302142832.html
SOURCE Zillow
FAQ
What is BuyAbility from Zillow Home Loans?
BuyAbility is a new tool that combines real-time mortgage rates with a buyer's credit score and income to determine a home price and monthly payment that fits within their budget, providing insight into loan qualification likelihood.
How can buyers access BuyAbility?
Buyers can access BuyAbility on the Home Loans tab on Zillow's app, where they can input their financial information to receive personalized estimates.
What factors does BuyAbility consider for affordability?
BuyAbility considers mortgage rates, credit score, income, and monthly budget to determine a home price and monthly payment that fits within a buyer's budget.
How does BuyAbility adjust for changes in mortgage rates?
BuyAbility updates in real-time with changes in mortgage rates, allowing buyers to track their financial picture and adjust their home price affordability accordingly.
How will BuyAbility change how people shop for homes?
BuyAbility will allow buyers to shop for homes on Zillow using their personalized estimates, rather than a price range, enabling them to find homes that truly fit their budget.
