The Potential Cost of Waiting to Buy a Home

Mortgage and Lending with Home Loans by Sean Young - New American Funding NMLS: 191647

What is the Potential Cost of Waiting? 

For many years we did not have to worry to much about the cost of waiting because housing prices were flat and interest rates were historically low.

However, home prices are increasing and interest rates are rising. More than ever you now need to think about how waiting to buy a home can potentially cost you thousands more.

Take a look at the difference in the average price and interest rate from Dec 2012 to Dec 2013. The average price increased by $16,800 and the average rate increased by 1.11% with an increased payment of $228.35 per month.

The person who decided to wait and purchase late 2013 paid an average of $2,740.20 more than they would have if they would of pulled the trigger a year earlier.

Not saying they got a bad deal, prices are still great and rates in the 4% range are still pretty damn amazing. The point is, if they made the jump earlier they would have benefited and saved thousands.

Difference in Monthly Payment from 2012 to 2013 - Sean Young















What will the estimated cost of waiting be from Jan 2014 to Jan 2015? 

Most analysts believe that by this time next year interest rates will be over five percent. For someone who has been in the industry for 18 years I still think that’s not a bad interest rate.

However if you had the chance to borrow money at the current average of 4.31% instead of the projected rate of 5.30% that Freddie Mac estimates for the 1st quarter of 2015 wouldn’t you?

The monthly estimated savings of $202.52 or $2,430.24 annually can make a huge difference. That difference could buy you more house, could be invested in the stock market, can be used to help pay down other debts, can be used to save towards a vacation or towards your kids college fund.

Difference in Monthly Payment Jan 14 to Jan 15 - Sean Young















Obviously no one has a crystal ball to determine what exactly interest rates will be or when they will go up. But looking back at the past year and reading the studies from the top analyst that rates will go up, is it worth the gamble to wait? 


Mortgage Rate Projections - Sean Young















Take the first step and contact your local Real Estate professional today. Don’t put this off and miss an opportunity to save thousands. Even if you don’t think you will qualify today, an experienced loan officer will review your situation and put you on a plan of action so you can take advantage of homeownership in the near future. Time to take the first step!


Sean Young
Senior Mortgage Advisor
FirstCal Colorado
NMLS: 191647
Office: (720) 457-5531



Mortgage Rate Projections
Mortgage Rate Projections2
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Sean Young
Mortgage Loan Officer

Cell: 303.521.7169

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NMLS: 191647  / LMB: 100013240

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