Waiting till Spring to buy a Home? It may cost you BIG

WAITING TILL SPRING TO BUY A HOME?
IT MAY COST YOU BIG!

No one has ever said to me
“I’m glad I waited another year to buy a home”.

Many homeowners have said to me
“I never should have waited another year, I am further behind now in what I can afford”.

Right now interest rates are falling as the volume of new loans flattens. We have lenders quoting 5.875% and 5.99% on 30 year fixed rate loans. That’s the lowest so far this year.

What will spring bring us? Normally loan interest rates and home prices increase every spring. Early this year we saw interest rates as high as 7%. Many experts anticipate seeing similar levels next year.

What does that mean to you in real dollars? If loan rates increase by 1% and you borrow $150,000, your payment will increase by $97.50 monthly or $1,170 annually. If you own your home for 10 years, that’s $11,700 more cost for that home. At $200,000 the cost is $15,600 and at $300,000 the cost is $23,400 higher.

Add to this a price rise, which normally occurs each new year, of 3-4% and you would be paying an additional $35 per month on a $200,000 purchase and you would pay $53 per month more at $300,000.

The total impact of a 1% rise in mortgage interest rates combined with a 3% rise in purchase price would mean you are paying $169 per month more on a $200,000 purchase and $254 per month more at $300,000. Over a 10 year period you pay $20,280 more on a $200,000 purchase and $30,480 more at $300,00 over a 10 year period.

Consider buying now!!