Whether you’re preparing to buy your first home or have been through the process ten times, if you’re contemplating a property purchase, you’ve probably asked yourself the question: Is now the best time? What you may not consider is the long-term impact on your finances the wrong decision will make.
The Cost of Waiting To Buy
Let’s get hypothetical to help explain the cost of waiting for a homebuyer this year. Suppose you’re considering putting in an offer on a home today, but—for any reason—decide to hold off for a full year.
Right now, you’d get a 4.01% interest rate—but 12 months down the road, that rate will have risen to 4.8%. By then, home values will have also appreciated by 5.3%.
Should these widely respected projections—predicted by Freddie Mac and Core Logic, respectively—pan out, you’ll be spending $186.20 more each month for every $250,000 you borrow.
The Impact Over Time
Based on the aforementioned estimates, taking out a $500,000 mortgage today instead of February 2017 would mean:
You save $372.40 each month
That is by no means an insignificant figure, particularly when you consider it equates to just shy of $4,500 per year. You need not possess advanced mathematical skills to figure out the rest of the story; if it’s a 30- or even 15-year you’re getting, what seems minor today proves beyond impactful tomorrow.
The bottom line: you will save a significant sum of money if you buy a home now instead of waiting. With that being said, what are you waiting for? Contact a First Team Real Estate agent today and make your savings worth it.
