Delaying a home purchase waiting for home values to decline could price you out of the market.
Say you are waiting for Tallahassee home values to decline 10%...
If that were to happen, and interest rates rose 1% to the 6% level, then you may not no longer be able to afford the same Tallahassee property. Interest rates are at all-time lows and have likely probability to increase. Not to mention the first time buyers tax credit.
Buying the same home | Waiting for price Decline | % change | Borrowing the same amount | Buying a better home
|
Borrow |
$100,000 |
$90,000 |
-10.0% |
$100,000 |
$100,000 |
|
Interest Rate |
5% |
6% |
20.0% |
7% |
8% |
|
Monthly Payment (30 year fixed rate loan) |
$536.82 |
$539.60 |
0.5% |
$665.30 |
$733.76 |
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