For those thinking of waiting to buy, you have to think about the potential cost of waiting.
For example If you didn’t buy last year and waited to buy now, how would that have impacted you?
What if you wait another year?
Take a $200,000.00 house from last year, add a ten percent increase in price in the last year, increase the rate from 3.5 percent you could get last year to 4.5 percent and the mortgage payment went from a little less than $900.00 a month to over $1,100.00 a month.
That’s a $216.62 increase every month they paid because they waited. If we multiply that over 12 months it cost them an extra $2,600.00 a year. Over a 30 year mortgage that’s almost $78,000.00 it cost that family because they waited a year.
What could be the potential cost of waiting another year?
The above scenario under Price is the actual loan amount and does not take into account any down payments, the interest rates shown are for 30 year fixed due in 30 years, 3.50% – 3.67 APR and 4.50% – 4.71% APR. This is only an example to show what the difference in payment is by increased rate and loan amount and does not reflect any specific loan or down payment or credit score.