Nationally, as well as locally, we are seeing
an uptick in both interest rates and home prices.
Let's do a little bit of simple math to see the difference a year can make in terms of your buying power and mortgage payments.
Let's say you decide to purchase a home close to our local average median price of $250,000. Let's assume your mortgage interest rate is 4%. Your monthly mortgage payment of principle and interest would be $1,193.54.
If you decide to wait a year before making your new home purchase, that same house will then have appreciated in market value and cost you $263,000. Interest rates will also likely be higher. I don't have a crystal ball, but based on forecasts and trends, it's realistic to say the average will be somewhere around 4.20% and possibly higher. This would give you a mortgage payment of $1,286.12.
Waiting a year will increase your mortgage payment almost $100 each month!
Annually, it would be an increase in your monthly payments of $1,110.96. Over the 30 year life of the typical mortgage that would add up to $33,329.
Give me a call to help you with the home buying process. Let's increase your odds of success in getting into your new home at the best possible price and terms!
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