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The Cost of Waiting to buy

Mortgage and Lending with CMG Home Loans NMLS 248937

Are you waiting for interest rates to drop to buy a home?  Here's why that may be a bad idea.

The above chart shows what you may lose if you put off buying a home.  Here is where that data comes from.

The above is based on purchasing a $400,000 home in Toms River, NJ (which is where my office is located) purchased with a 10% down payment. (with a lower down payment it will look even better).

The Model's assumption is that that zip code will increase in value 5.3% this year - The forecasted appreciation for the nation is 5% as a comparison.  Had we done the same exercise last year the appreciation numbers would be even greater with the National average appreciation coming in right about 7% in 2023.

As you wait for the "perfect rate" it is likely we will see housing prices continue to climb and the above figures are calculated at a pretty modest 5% gain.  The big item to consider is we are still sitting on very low housing inventory and as rates do come down the competition for the existing housing inventory will be fierce and may lead to even stronger appreciation numbers.  

What the above chart doesn't show: If you wait not only will you pay more for the home but you will also need thousands more to buy the same home due to a larger down payment, higher closing costs....

I'd only advise against buying for a few reasons: 1) you cant afford to buy now 2) you think you will be moving in a year. Since it cost money to buy and sell a home it is a better long term investment.

TLDR: If you wait to buy it is likely to cost you significantly more and you will miss out on equity earned. When rates do drop you can always refinance to the lower interest rate when that makes sense for you, all while locking in a better price and building equity.

If you are looking to purchase or refinance a home in NJ, please give me a call, I can also help you in all 50 states, CMG is licensed throughout the country.

Robert Rauf 
Mortgage Loan Originator NMLS# 248937
or my blog: http://activerain.com/blogs/rrauf 
Office: (732)908-4868  Cell (732)740-0175 


Since 1987 I have been helping my clients fulfill their dream of home ownership! CMG Home Loans  is located at 222 Commons Way Toms River, NJ 08755. NMLS #1820. Visit  www.RobertRauf.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721, 

George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Robert Rauf waiting to purchase a home around here is a big mistake, home prices are continuing to go up and up.

Jan 29, 2024 05:02 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker
Great information, thanks for sharing.  I hope you have a great day.
Jan 30, 2024 04:40 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

George Souto I think that is a true statement for most of the country... and there are likely to be a lot of people kicking themselves for waiting.


Jan 30, 2024 06:27 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

Richard Weeks I hope you found it useful for your business.

Jan 30, 2024 06:28 AM