Right now, a lot of homebuyers in our market are sitting on the fence and waiting to make their move. If you count yourself as one of these buyers, you should know that waiting to buy will cost you.
You see, interest rates are incredibly low right now, but because they’ve been so low for a while, people forget what great rates are available.
To know how much waiting to buy is costing you exactly, consider the following scenario:
If you’re in the market to buy a $275,000 home in 2019 and you put 20% down for it, you’d pay $55,000 in money down. If your credit score is 660 or greater, your interest rate would be roughly 5.375%, which amounts to a monthly mortgage payment of $1,232.
If you wait until 2020 to buy that same home, its price tag would jump to $298,100 since home values are expected to appreciate by 8.4% this year. Also, assuming you have the same credit score, your interest rate would rise to 6.375%. That means your down payment would increase by $4,600 and your monthly mortgage payment would increase by $256 to $1,488.
If you think a monthly difference of $256 isn’t that substantial, keep in mind that over the course of a 30-year loan, that adds up to an extra $92,159.
So think about making your move now and buy the home you want before it goes up in value and interest rates rise. We’d be happy to help you make that leap of faith in 2019.
If you have any more questions about this topic or you have any other real estate needs my team and me can help you with, don’t hesitate to reach out to us. We’d love to speak to you.