What is the cost of waiting to purchase mean to your monthly payment?

By
Real Estate Broker/Owner with Apex California Realty

There are many people waiting to time the "Bottom" of the home price AND get a smoking rate.When is that time? That's a good question...the lender I work with are all saying that interest will be going up...and will probably not be going down again any time soon!

If a person waits to purchase for say, another 6 months hoping to save $3,5,10k what will that mean to their monthly payment?

In this example we take a buyer that purchases a home with a list price of $300k

They borrow $275k for 30 years at 5%

Their payment is $1476.26

The same buyer waits to save $5,000 and purchases a home for $295,000

and borrows $270k for 30 years.

By waiting the monthly payment is $ 1648.76

So by waiting to save $5k this buyer is going to pay $172.50

a month MORE for 30 Years!!

That's $62,100 for the life of the loan!!!!

Do you think it makes sense to wait now?

 

Regards

 

Richard

 

Posted by

Richard Goates

e-PRO

Eco Broker

http://www.inforedding.com

01251781

Comments (1)

Craig Snead
Quality Home Investments, LLC / Dearborn Heights, MI - Dearborn Heights, MI
Real Estate Investor

Richard,

Valid point.  Why wait when the home prices are low right NOW.........

 How much did the rate increase to give you the increased payment amount?

Jan 05, 2010 07:14 AM