Waiting to Buy Could Cost You
If you’ve been on the fence about buying your first house or moving up to a larger one, waiting until next year may ultimately mean more money out of your pocket. Why? Not only are home prices rising, the interest rate you pay on a mortgage is also expected to increase. The higher the rate, the greater the payment will be. Let’s look at an example of how this impacts a mortgage payment. Say you found your dream home today and are getting a loan for $250,000. Current mortgage rates are around 4% so the monthly payment is $1194 (principal and interest only). By this time next year, rates are projected to increase to around 5% and home prices are also expected to increase about 4.3%. To buy that same house, you now are getting a loan for $260,750 and the monthly payment is $1400. The difference in payment is $206 more a month! Over the course of a year, that is $2472. Hmm, I’m sure you could think of plenty of things to do with that kind of extra money! Bottom line, if you seriously want to buy, waiting until next year does not make sense. Contact me if you want to take advantage of today’s rates and pricing to find your new home. www.donnaforest.com, donna@donnaforest.com, 603-526-4116.