I’m at the age when I should be looking into buying a home. The problem is: I can’t afford it!

I recently came across some good, practical information from Prudential Locations that I think will be useful to potential homebuyers.

According to Prudential, most buyers think that the lower the selling price of a house, the lower the monthly payment. Borrow less, pay less. But what many people fail to understand is that the cost of money — the mortgage interest rate — can be far more important than the cost of the home.

Typically, buyers focus on price so they can lock in a lower monthly payment. However, rather than waiting for the price to go down, it might be smarter to secure a lower interest rate to produce the same result. With interest rates at their lowest level in 30 years, your buying power increases.

Here’s what that means for buyers:

• You can get the home you want for less. A two-point drop in interest is the same as a 20-percent reduction in the sale price. So, that $500,000 home now has the equivalent monthly payment of a $400,000 home.

• You can get more house for the price. Let’s say you could afford the payments on a $500,000 house before interest rates dropped. With a lower interest rate, that same monthly payment can now get you a $600,000 house. A two-point drop in your interest rate increases your buying power by 25 percent.

Just remember, Hawaii real estate tycoon Peter Savio says one of the most important things to know about building wealth in real estate is the power of the monthly payment. The way he sees it, a mortgage is nothing more than a “forced savings account.”