What is the value of a home?


The value of a home, according to from the , isn't quantified simply by its price, but by its monthly payment. This reflects a shift from traditional views of real estate value to a more buyer-centric view focusing on affordability. Barrett explains that the value of a home to most people is essentially what they can afford to pay monthly, which is determined by the amount financed, the mortgage term, and the interest rate. He emphasizes that other factors like the overall selling price and traditional market values are secondary to these payment calculations for the average buyer 1.

The Value of a Home

Brad argues that the value of a home is not its price, but rather the monthly payment. He explains that for most people, the monthly payment is the most important factor when buying a house, and that it is determined by the amount financed, the term of the mortgage, and the interest rate.


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