As a seller, the cost of your home only affects you for a short period of time. But, as a buyer, the price of the home affects you for YEARS, and many buyers do not take this into consideration. Of course it is all dependent on the type of mortgage your choose and the interest rate at the time.
Interest Rate– is the key thing to keep in mind. In the recent news, many of the major players projected that mortgage interest rates will increase. Possibly even a FUll 1% in the next few months. So, in addition to home prices rising, interest rates will also continue to rise.
So, if you are considering a home purchase in the near future, NOW may actually be the right time to buy. Waiting…may cost you more then you think. Although the fluctuating interest rates can only be as estimate from week to week, talking with an experienced realtor in the area you’re looking in could help you get a closer estimate.
So, if the average price of a home is $250,000, and the interest rates rise by 1%… here is how you would be affected. Your mortgage cost would be an extra $150 dollars a month. An extra $1,800 a year. And approximately $54,000 in interest over a 30 year loan.
If you have any questions on buying or selling, give us a call at 651-269-3487 or email us at Sandy@SandyErickson.com!
Buying now could actually save you around $54,000! These are fairly significant changes for the average middle class family.