Common Mistakes
One of the biggest mistakes I see people make with the Interest Rate Impact Tool is not accounting for regional differences. The impact of interest rate changes can vary significantly depending on where you live in the U. S. For example, in a high-cost market like California, a small uptick in rates can really put the squeeze on affordability, whereas in more affordable areas, the effect might be less pronounced.
How to Avoid Them
When you use the Interest Rate Impact Tool, another common misstep is not considering the full scope of the tool's capabilities. Sure, it's great for estimating monthly payments, but you can also use it to model different loan terms, down payments, and even trade-in values.
