Many real estate practitioners consider today to be a “perfect storm” for home buyers: numerous homes to choose from, affordable home prices, historically low interest rates and an $8,000 tax credit. What more could a buyer ask for?
There is ample opportunity for quality, affordable homes today and prices just seem to be getting better. However, another critical component of buying a home is your interest rate.
Today, we know where rates are at - and they’re incredible for buyers. However, no one knows where rates will be tomorrow, so have you considered your cost of waiting to buy?
Allow me to demonstrate the monthly payment on a $200,000 home (at a 30 year fixed interest rate):
4.75% = $1,043 per month (this is where rates are today)
5.25% = $1,104 per month (a $61 increase over today’s rate)
5.75% = $1,167 per month (a $124 increase over today’s rate)
6.25% = $1,231 per month (a $188 increase over today’s rate)
If you can buy a great $200,000 home today with a $1,043 monthly payment, why would you wait to buy that same home for a $1,231 monthly payment tomorrow?
No comments:
Post a Comment