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
SEATTLE, May 13, 2024
/PRNewswire/ -- Today, Zillow Home Loans is introducing BuyAbility,
a new tool that addresses one of the biggest considerations buyers
face today: understanding what they can afford. Only offered on
Zillow, BuyAbility gives buyers a personalized, real-time estimate
of the home price and monthly payment that fits within their
budget, and then gives insight into the likelihood of qualifying
for a loan. BuyAbility is powered by real-time mortgage rates from
Zillow Home Loans.
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 $380,000 home with rates at 7%; if rates went
down to 6%, that same household could afford a $420,000 home2. Checking their
BuyAbility regularly gives shoppers a clear and current
understanding of their financial picture at any given moment.
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
the United States, Zillow and its
affiliates help people find and get the home they want by
connecting them with digital solutions, dedicated partners and
agents, and easier buying, selling, financing and renting
experiences.
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)
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1 Available
on iOS only, with Android launching later this year.
2 Assuming fixed rates and a 20% down
payment.
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SOURCE Zillow