Using a mortgage affordability calculator is a crucial step for homebuyers in Idaho, as it helps to determine how much mortgage they can afford based on their financial situation. These calculators take into account various factors such as income, debt, credit score, and current interest rates. Understanding how to effectively use such tools can lead to better financial decisions and more affordable home purchases. This article delves into the intricacies of mortgage affordability calculators specifically tailored for Idaho loans, providing comprehensive guidance for serious borrowers and investors.

What is a mortgage affordability calculator?

A mortgage affordability calculator is a tool that estimates how much house you can afford based on your financial information. It helps potential buyers gauge their budget and make informed decisions when shopping for a home.

Definition of a mortgage affordability calculator

A mortgage affordability calculator is an online tool that allows users to input financial data, such as income and debts, to estimate the maximum mortgage amount they can afford. It simplifies complex calculations into a user-friendly format, enabling prospective homeowners to understand their purchasing power quickly.

How it works

The calculator typically requires inputs like gross income, monthly debt payments, and interest rates. It processes this information to deliver an estimate of how much you can afford in monthly payments and the total loan amount. This process involves calculating your debt-to-income ratio and factoring in standard lending criteria.

Benefits of using one

Using a mortgage affordability calculator provides several advantages, including enhancing financial awareness, guiding budget decisions, and streamlining the home-buying process. It helps buyers avoid overspending and assists in determining realistic price ranges for homes, ultimately leading to more informed financial choices.

Why is a mortgage affordability calculator important for Idaho loans?

A mortgage affordability calculator is particularly important for Idaho loans as it helps borrowers navigate local market conditions, regulations, and financial implications unique to the state. This understanding is essential for making responsible borrowing decisions.

Understanding Idaho’s housing market

Idaho’s housing market has seen significant growth in recent years, resulting in varying home prices across the state. Understanding local market trends is crucial when determining affordability. For instance, urban areas like Boise have higher average home prices than rural regions, affecting mortgage calculations.

State-specific loan regulations

Idaho has specific regulations that influence mortgage lending, including limits on down payments and loan amounts. Familiarizing yourself with these regulations is essential for accurate affordability assessments. For example, certain state programs may offer lower down payments for first-time homebuyers, impacting overall affordability.

Local cost of living considerations

The cost of living in Idaho can vary significantly between different regions. A mortgage affordability calculator helps to factor in local costs, such as utilities and property taxes, ensuring that borrowers have a realistic view of their financial situation before committing to a mortgage.

How do I find a mortgage affordability calculator?

Mortgage affordability calculators can be found through various online resources, including bank websites, lender tools, and specialized financial websites. These platforms offer user-friendly interfaces for effective budget planning.

Online resources

Numerous financial websites offer free mortgage affordability calculators, allowing users to input their financial information securely. These calculators often provide additional resources, such as educational articles and expert advice, to assist users in understanding the mortgage process better.

Bank and lender tools

Most banks and mortgage lenders provide their own affordability calculators as part of their online services. These tools are often tailored to the specific loan products they offer, ensuring that potential borrowers receive accurate estimates relevant to their financial situations.

Mobile apps

In today’s digital age, many mobile apps are available that incorporate mortgage affordability calculators. These apps can be convenient for users on the go, providing quick access to mortgage estimates and additional budgeting tools right from their smartphones.

What information do I need to use a mortgage affordability calculator?

To effectively use a mortgage affordability calculator, you will need to provide detailed financial information, including your income, existing debts, and credit score. This information is essential for producing an accurate estimation of your mortgage affordability.

Income details

Your income is the primary factor in determining how much mortgage you can afford. Ensure to include all sources of income, such as salaries, bonuses, and any additional earnings. Accurately reporting your income is crucial for the calculator to provide a realistic estimate of your affordability.

Debt obligations

All monthly debt payments, including student loans, car payments, and credit card debt, should be factored into the calculation. This information allows the calculator to assess your debt-to-income ratio accurately, a key indicator of mortgage eligibility and affordability.

Credit score

Your credit score plays a significant role in determining your mortgage rates and the amount you can borrow. Most affordability calculators will ask for your credit score to provide a more precise estimate of your potential mortgage payments, as different scores can lead to vastly different interest rates.

How do I input my income into the calculator?

When entering your income into the mortgage affordability calculator, it’s essential to differentiate between gross and net income, as well as consider any irregular income. This ensures that your affordability estimate is as accurate as possible.

Gross vs. net income

Gross income refers to your total earnings before taxes and deductions, while net income is what you take home after these deductions. Most calculators will require your gross income for a more accurate assessment of your borrowing capacity, as lenders typically evaluate income before taxes.

Regular vs. irregular income

Consistent income, such as a salary, is straightforward to input. However, if you have irregular income from freelance work or commission-based jobs, consider averaging your earnings over the past year to provide a more accurate representation of your financial situation to the calculator.

Bonus and commission considerations

If you receive bonuses or commissions, include these in your income calculations. However, it is advisable to use a conservative estimate, as these income sources may vary significantly from month to month. This approach helps in creating a more reliable budget based on your primary income sources.

What debts should I consider when calculating affordability?

When using a mortgage affordability calculator, consider all monthly debt payments that impact your financial health. This includes various financial obligations that can affect your debt-to-income ratio and overall affordability.

Monthly debt payments

Include all recurring monthly debt payments, such as credit card bills, student loans, car loans, and personal loans. Accurately reporting these payments is crucial for determining how much of your income goes toward debt, affecting your ability to afford a mortgage.

Other financial obligations

In addition to standard debt payments, consider other financial obligations, such as child support or alimony. These payments can significantly impact your financial profile and should be included in the affordability calculation to provide a more comprehensive view of your borrowing capacity.

Impact of student loans

Student loans can be a significant financial burden for many borrowers. When calculating affordability, include both federal and private student loan payments. Understanding how these loans affect your debt-to-income ratio is essential for making informed mortgage decisions.

How does my credit score affect my mortgage affordability?

Your credit score is a crucial factor in determining mortgage affordability, as it influences the interest rates lenders will offer. A higher credit score typically results in better loan terms and lower monthly payments.

Understanding credit score ranges

Credit scores typically range from 300 to 850. A score above 700 is generally considered good, while scores below 620 may pose challenges when securing a mortgage. Understanding where you stand within these ranges can help you gauge your mortgage options and affordability.

How lenders view credit scores

Lenders assess credit scores to evaluate risk. A higher score indicates a lower risk of default, leading to more favorable loan terms. Conversely, a lower score may result in higher interest rates and stricter loan conditions, impacting overall affordability.

Impact on interest rates

Interest rates are often directly tied to credit scores. For example, borrowers with scores above 740 can secure significantly lower rates than those with scores in the 600s. This difference can drastically affect monthly payments and total loan costs, emphasizing the importance of maintaining a good credit score.

What are the common inputs for Idaho mortgage affordability calculators?

Common inputs for Idaho mortgage affordability calculators typically include the loan amount, interest rates, and loan term. Understanding these inputs helps users make informed decisions about their mortgage options.

Loan amount

The loan amount is the total sum you plan to borrow. This figure is critical for determining monthly payments and overall affordability. Users should consider their budget and local market conditions when deciding on an appropriate loan amount.

Interest rates

Interest rates can significantly impact the overall cost of a mortgage. Inputting the correct interest rate into the calculator is essential for obtaining an accurate estimate of monthly payments. Keep an eye on current trends, as rates fluctuate frequently.

Loan term

The loan term refers to the duration over which the mortgage will be repaid, typically ranging from 15 to 30 years. The choice of loan term affects monthly payment amounts and total interest paid over the life of the loan, making it a vital input in affordability calculations.

How do I calculate my debt-to-income ratio?

Your debt-to-income (DTI) ratio is a critical metric that lenders use to assess your financial health. This ratio compares your total monthly debt payments to your gross monthly income, providing insight into your ability to manage monthly payments.

Definition of DTI

Debt-to-income ratio is defined as the percentage of your gross income that goes toward servicing debt obligations. A lower DTI indicates better financial health and increases your chances of loan approval. Lenders often prefer a DTI of 36% or lower.

How to calculate DTI

To calculate your DTI, sum all your monthly debt payments and divide this number by your gross monthly income. Multiply the result by 100 to get a percentage. For instance, if your monthly debts total $2,000 and your gross income is $5,000, your DTI would be 40%.

Importance of DTI in loan approval

Your DTI ratio plays a significant role in mortgage approval decisions. Lenders use this metric to assess your ability to manage additional debt. A high DTI may result in higher interest rates or even disqualification for certain loan products, making it crucial to keep this ratio in check.

What is the maximum DTI ratio for Idaho loans?

The maximum DTI ratio for Idaho loans varies based on the type of loan product. Conventional loans generally have stricter DTI limits than government-backed loans, affecting your borrowing options and affordability.

Conventional loan limits

For conventional loans, lenders typically prefer a DTI ratio of 36% or lower. However, some may allow ratios up to 45% with compensating factors, such as a high credit score or larger down payment. Understanding these limits is essential for planning your mortgage application.

FHA loan limits

FHA loans are more lenient regarding DTI ratios, allowing borrowers to go up to 43% or even higher in some cases. This flexibility can be beneficial for first-time homebuyers or those with lower credit scores, making it an attractive option for many Idaho residents.

VA loan limits

VA loans do not have a strict DTI limit but typically recommend keeping the DTI below 41%. Additionally, VA loans consider residual income, which assesses remaining income after debt obligations, providing a more comprehensive view of affordability for veterans.

What is the significance of down payment in Idaho loans?

The down payment is a critical element in securing a mortgage, impacting loan approval and affordability. In Idaho, understanding typical down payment percentages and assistance programs is essential for potential borrowers.

Typical down payment percentages

In Idaho, traditional down payment requirements often range from 3% to 20%, depending on the loan type. A higher down payment can reduce monthly payments and eliminate private mortgage insurance (PMI), making it a significant factor in the affordability calculation.

Impact on loan approval

A larger down payment can enhance your chances of loan approval, as it reduces the lender’s risk. Additionally, a substantial down payment may result in better interest rates and loan terms, directly affecting your overall mortgage affordability.

Assistance programs in Idaho

Idaho offers various down payment assistance programs for first-time homebuyers. These programs can help reduce the financial burden of a down payment, making homeownership more accessible and allowing borrowers to enter the market with a more manageable financial commitment.

How do interest rates affect mortgage affordability?

Interest rates have a direct impact on mortgage affordability, influencing monthly payments and total loan costs. Understanding current trends and the differences between fixed and adjustable rates is crucial for making informed borrowing decisions.

Current interest rate trends

Interest rates fluctuate based on economic conditions, Federal Reserve policies, and market demand. Staying informed about current trends can help borrowers time their mortgage applications effectively and secure the best possible rates, ultimately influencing affordability.

Fixed vs. adjustable rates

Fixed-rate mortgages maintain the same interest rate throughout the loan term, providing stability for borrowers. Conversely, adjustable-rate mortgages (ARMs) may start with lower rates but can fluctuate over time, impacting long-term affordability. Understanding the differences is key to selecting the right loan type.

Impact of rates on monthly payments

Even a slight change in interest rates can significantly affect monthly payments. For example, a 0.5% increase in a $300,000 mortgage can add hundreds of dollars to monthly payments. Therefore, borrowers must consider how interest rates affect their overall mortgage affordability.

What additional costs should I factor in?

When calculating mortgage affordability, it’s essential to consider additional costs beyond the principal and interest payments. These costs can significantly affect your budget and overall financial health.

Property taxes

Property taxes in Idaho can vary widely depending on the location and assessed value of the home. It’s crucial to research local tax rates and factor these costs into your monthly budget to avoid unexpected financial burdens.

Homeowners insurance

Homeowners insurance is another essential expense that should be included in your mortgage affordability calculations. This insurance protects your property against damages and loss, and the cost can vary based on the home’s value and location. Knowing these costs in advance helps in creating a comprehensive budget.

Closing costs

Closing costs can add an additional 2% to 5% of the loan amount to your expenses. These costs can include appraisal fees, title insurance, and other transaction-related fees. Understanding these costs is vital to ensure you have adequate funds available when closing on your new home.

How can I adjust my calculator inputs for a better estimate?

Adjusting your calculator inputs can provide a more accurate estimate of mortgage affordability. Experimenting with different variables allows you to see how changes can impact your budget and borrowing capacity.

Testing different loan amounts

By inputting various loan amounts, you can assess how much home you can afford based on different price points. This exercise can help you better understand your budget and narrow down your home search to properties within your financial reach.

Adjusting interest rates

Interest rates can vary widely and significantly impact your affordability. By adjusting the interest rate inputs in the calculator, you can see how even small fluctuations can affect your monthly payments and overall loan cost, helping you make informed decisions.

Changing loan terms

Experimenting with different loan terms, such as 15-year vs. 30-year mortgages, can also provide valuable insights. Shorter loan terms typically result in higher monthly payments but lower overall interest costs, while longer terms offer lower monthly payments but higher total interest paid.

What is the role of local Idaho lenders in the calculation?

Local Idaho lenders play a significant role in the mortgage affordability calculation, offering specific products and services tailored to the regional market. Understanding local lender requirements can enhance your affordability assessment.

Finding local lenders

Researching local lenders can provide insights into mortgage products specifically designed for Idaho residents. Local lenders may offer unique programs, competitive rates, and personalized service, making them a valuable resource for homebuyers in the area.

Comparing lender offers

Comparing offers from multiple lenders is essential for finding the best mortgage terms. Each lender may have different criteria, interest rates, and fees, affecting your overall affordability. Utilize affordability calculators to assess how these variables change based on lender offers.

Understanding lender requirements

Different lenders have varying requirements for credit scores, debt-to-income ratios, and down payments. Familiarizing yourself with these requirements can help you make more informed decisions and better assess your mortgage eligibility and affordability.

How can I use the calculator to set a budget?

A mortgage affordability calculator can assist in setting a realistic budget for your home purchase. By understanding your financial limits, you can prioritize your home search and make informed decisions.

Determining a comfortable monthly payment

Using the calculator, determine a comfortable monthly payment that aligns with your income and expenses. This figure should consider all financial obligations to ensure you do not overstretch your budget and can maintain a healthy financial balance.

Setting spending limits

Establishing spending limits based on affordability estimates helps streamline your home search. Knowing your price range can prevent you from looking at homes outside your financial capacity, leading to more efficient and focused property hunting.

Prioritizing home features

Understanding your budget allows you to prioritize essential home features and amenities. By knowing what you can afford, you can distinguish between must-haves and nice-to-haves, ultimately guiding your search towards homes that meet your needs and financial constraints.

What are the limitations of a mortgage affordability calculator?

While mortgage affordability calculators are valuable tools, they have limitations that borrowers should be aware of. Understanding these constraints can lead to more informed decision-making throughout the mortgage process.

Static assumptions

Many calculators operate on static assumptions regarding interest rates, tax rates, and other financial variables. These assumptions may not reflect current market conditions, leading to potentially inaccurate affordability estimates. Always verify these assumptions before making financial decisions based on calculator results.

Market fluctuations

The real estate market can fluctuate significantly, impacting property values and interest rates. A calculator may not account for rapid changes in these variables, so it’s essential to stay informed about current market conditions when assessing affordability.

Personal financial changes

Your financial situation may change over time due to job changes, unexpected expenses, or other life events. These changes can affect your mortgage affordability, making it essential to regularly reevaluate your budget and calculations as circumstances evolve.

How can I ensure accurate results from the calculator?

To achieve the most accurate results from a mortgage affordability calculator, it’s crucial to input precise financial data and verify your calculations. This diligence can lead to better budgeting and borrowing decisions.

Double-checking inputs

Before finalizing your calculations, double-check all inputs for accuracy. Ensure that your income, debt payments, and credit score are entered correctly to avoid misleading estimates that could impact your affordability assessment.

Using multiple calculators

Utilizing multiple mortgage affordability calculators can provide a range of estimates, allowing you to compare results. Different calculators may offer varied approaches and assumptions, helping you achieve a more rounded understanding of your affordability.

Consulting with a financial advisor

Consulting a financial advisor can provide additional insights into your financial situation and mortgage options. Advisors can help you understand the nuances of your affordability calculations and ensure you are making informed decisions based on your unique circumstances.

What should I do after calculating my mortgage affordability?

After determining your mortgage affordability, the next steps involve exploring loan options, preparing for pre-approval, and potentially consulting with a mortgage broker for personalized advice. These actions can enhance your home-buying experience.

Reviewing loan options

Take the time to review various loan options that fit within your affordability range. Understanding the differences between fixed and adjustable-rate mortgages, as well as the terms associated with each, can help you make the best decision for your financial situation.

Preparing for pre-approval

Once you have calculated your affordability, consider applying for pre-approval from lenders. Pre-approval provides a clearer picture of what you can borrow and strengthens your position when making offers on properties, as it indicates to sellers that you are a serious buyer.

Consulting a mortgage broker

A mortgage broker can provide tailored advice based on your financial profile and the local market. They can help you navigate the mortgage landscape, identify suitable loan products, and secure the best rates, enhancing your overall borrowing experience.

How often should I re-evaluate my mortgage affordability?

It’s essential to re-evaluate your mortgage affordability regularly, especially in response to life changes, market fluctuations, and shifts in interest rates. This practice ensures that your financial planning remains aligned with your current circumstances.

Life changes

Major life events, such as a job change, marriage, or the birth of a child, can significantly impact your financial situation. Regularly reassessing your mortgage affordability allows you to adjust your budget and borrowing capacity based on these changes.

Market changes

Changes in the housing market can influence home prices and availability. Stay informed about local market trends and re-evaluate your affordability periodically to ensure your financial plans remain realistic and aligned with current conditions.

Interest rate shifts

Interest rates can fluctuate based on economic conditions, impacting your mortgage payments. Regularly checking the market for rate changes and adjusting your affordability calculations accordingly can help you make timely and informed borrowing decisions.

What are common mistakes to avoid when using a mortgage affordability calculator?

Using a mortgage affordability calculator can be beneficial, but certain common mistakes can lead to inaccurate results and poor financial decisions. Being aware of these pitfalls can enhance your budgeting process.

Underestimating expenses

Many borrowers underestimate additional costs associated with homeownership, such as maintenance, utilities, and property taxes. Failing to account for these expenses can lead to financial strain after purchase. Always factor in these costs when using a mortgage affordability calculator.

Ignoring credit impacts

Some users may overlook the influence of their credit scores on mortgage affordability. Ignoring how credit can affect interest rates can lead to unrealistic expectations regarding monthly payments and total loan costs.

Overestimating income

Overestimating your income can lead to inflated affordability calculations. It’s essential to provide accurate income figures, including considering any irregular income sources, to avoid financial stress when making mortgage payments.

Can I use a mortgage affordability calculator for refinancing?

Yes, mortgage affordability calculators can also be used for refinancing assessments. They help borrowers understand their financial position and determine whether refinancing is a viable option to reduce payments or access equity.

Refinancing basics

Refinancing involves replacing your existing mortgage with a new one, often to secure a lower interest rate or change loan terms. A mortgage affordability calculator can help evaluate your current financial situation and determine if refinancing meets your goals.

When to consider refinancing

Consider refinancing when interest rates drop significantly, your credit score improves, or you want to switch from an adjustable-rate mortgage to a fixed-rate mortgage. Using a calculator can help assess whether these changes will benefit your financial situation.

Potential savings

Refinancing can offer significant savings in monthly payments or total interest costs. By using a mortgage affordability calculator, you can estimate potential savings and evaluate whether the costs associated with refinancing are justified.

How do Idaho-specific programs affect affordability?

Idaho offers various programs aimed at assisting homebuyers, especially first-time buyers, which can significantly affect mortgage affordability. Understanding these programs can enhance your financial planning and home-buying strategy.

First-time homebuyer programs

Idaho provides several first-time homebuyer programs that offer down payment assistance, lower interest rates, or reduced mortgage insurance costs. These programs can make homeownership more accessible for individuals and families with limited financial resources.

Down payment assistance

Down payment assistance programs can help alleviate the burden of upfront costs, allowing borrowers to enter the housing market with lower initial investments. Knowing about these options can enhance your affordability calculations and overall home-buying strategy.

Special loan products

Idaho also offers special loan products designed for specific demographics, such as veterans or low-income families. These products often come with favorable terms, making them an attractive option for eligible borrowers looking to maximize their mortgage affordability.

How can I use the calculator to prepare for future expenses?

A mortgage affordability calculator can assist in planning for future expenses associated with homeownership, such as maintenance costs, property taxes, and potential renovations. This foresight helps in creating a comprehensive financial strategy.

Predicting maintenance costs

Home maintenance is an ongoing expense that can vary significantly. By estimating these costs and including them in your calculations, you can prepare for the financial responsibilities that come with owning a home, ensuring you remain within your budget.

Planning for property taxes

Property taxes can increase over time, impacting your overall budget. Estimating future property tax increases based on local trends can help you plan your finances more effectively and avoid potential financial strain.

Budgeting for home improvements

Many homeowners will eventually want to make improvements or renovations to their properties. Setting aside a portion of your budget for these future expenses can ensure that you have the necessary funds when the time comes, contributing to your overall financial health.

What role does the mortgage affordability calculator play in the home buying process?

The mortgage affordability calculator serves as an essential first step in the home-buying process, providing insights that guide borrowers in their search for suitable properties. It helps align financial capabilities with market conditions.

First steps in home buying

Before beginning the home search, using a mortgage affordability calculator can help clarify budget constraints and financial goals. This foundational step is crucial in ensuring that potential buyers focus on homes that fit their financial profiles.

Aligning with a realtor

Once you have determined your affordability, collaborating with a realtor becomes easier. A realtor can assist you in finding properties within your budget, streamlining the home-buying process and reducing time spent on unsuitable listings.

Understanding market conditions

Utilizing a mortgage affordability calculator also enables you to stay informed about market conditions. By understanding your financial limits, you can navigate the market more effectively and make informed decisions about when and where to purchase a home.

How can I use a mortgage affordability calculator to compare different loan options?

A mortgage affordability calculator can be instrumental in comparing various loan options, helping borrowers evaluate the financial implications of different mortgage products. This analysis aids in making informed borrowing decisions.

Side-by-side comparisons

Using the calculator to create side-by-side comparisons of different loan scenarios allows you to evaluate how varying interest rates, loan terms, and down payments affect your overall affordability. This analysis is essential for making informed decisions that align with your financial goals.

Analyzing total cost

In addition to monthly payments, consider the total cost of each loan option over its lifespan. The affordability calculator can help you project total interest paid, providing insight into which loan might be the most financially advantageous in the long run.

Considering loan terms

Different loan terms can drastically change your monthly payment and overall affordability. By adjusting the loan term in the calculator, you can see how short-term loans may offer lower interest rates but higher monthly payments, informing your decision based on your financial situation.

What are alternative tools to a mortgage affordability calculator?

In addition to mortgage affordability calculators, various alternative tools can assist borrowers in evaluating their financial options. These tools can complement affordability assessments and provide a more comprehensive financial overview.

Mortgage payment calculators

Mortgage payment calculators allow users to estimate monthly payments on specific loan amounts, interest rates, and terms. These calculators can help borrowers understand how different variables will affect their monthly obligations.

Loan comparison tools

Loan comparison tools provide users with the ability to evaluate multiple loan products side by side. This can be beneficial for understanding the nuances of different loan offers and finding the best option for your financial needs.

Financial planning apps

Many financial planning apps include mortgage affordability calculators as part of their features. These apps can help users track their budget, savings goals, and overall financial health, providing a more holistic view of their financial landscape.

How can I integrate a mortgage affordability calculator into my financial planning?

Integrating a mortgage affordability calculator into your financial planning can enhance your budgeting strategy and long-term financial goals. This integration ensures that your home-buying decisions align with your overall financial health.

Setting long-term financial goals

Using a mortgage affordability calculator helps clarify your long-term financial goals by providing a realistic view of your borrowing capacity. This understanding can guide you in setting savings targets and other financial priorities that align with your homeownership aspirations.

Aligning with retirement planning

Incorporating your mortgage affordability into your retirement planning is crucial. Understanding how homeownership will impact your long-term finances can help you strike a balance between investing in real estate and saving for retirement.

Building a savings plan

Finally, using the calculator can inform your savings plan by highlighting how much you need to save for a down payment and closing costs. This information enables you to create a structured savings strategy that supports your home-buying journey.

Mini FAQ

What is a mortgage affordability calculator? It’s a tool that estimates how much mortgage you can afford based on your financial situation.

Why is it important for Idaho loans? It helps navigate local market conditions, regulations, and specific financial implications relevant to Idaho.

What information do I need to use it? You need to provide income details, monthly debt obligations, and your credit score.

Can I use it for refinancing? Yes, it can help assess your financial position when considering refinancing options.

What are common mistakes to avoid? Underestimating expenses, ignoring credit impacts, and overestimating income can lead to inaccurate results.

How often should I re-evaluate my affordability? Regularly, especially in response to life changes, market fluctuations, and interest rate shifts.