Should I buy now or later? I get this quiet often. Many folks think that prices may drop. Yes, I agree they may, but who knows for sure. What many buyers do not realize is that while prices may drop, interest rates will more than likely go up!
I work in a highend market, in Newport Beach, Ca. Let's just say you purchase a home today and take out a $1,000,000 loan. This is a typical loan amount here in Newport Beach. A 30 year fixed loan at 5.25% today would make your mortgage payment about $5,522 a month. Lets say next year rates go up just 1 point, that same loan payment would then be $ 6,157. That is $635 more a month . For the life of that loan it is $228,600 more. Which would you rather pay?
Remember that is only 1 point higher. We are due for inflation. If interest rates go up it will prevent many buyers from buying. If you have the money today and you find a home you can afford and love it, my suggestion to you is buy it!
For information on Newport Beach real estate feel free to contact me!
To find out what your home is worth, fill out the form below. You will receive a report directly in your in box in just a few seconds!
Comments(1)