You Could Lose a Bedroom by Waiting to Buy!
Waiting to buy your next home could cost you in more ways than you think….chiefly due to an interest rate increase, cost of building supply increases and more competition from other buyers who waited.
Today’s interest rates for conforming loans up to $417,000 range from 3.625% to 3.75%. If your budget was to pay no more than $2500/mo (inc. taxes & Insurance,) you could buy a $317,000 house after a 5% down payment.
But you wanted to wait until school’s out and then move, right? What if the interest rates jumped to 4.25%? Keeping the same budgeted monthly payment cap of $2500, you can now only look for a home up to $306,000+/-.
That $11,000 could easily have bought you more house – maybe the 4th or 5th bedroom….or the extra living room upstairs….a newer home….an extra garage stall….nicer amenities and finish-out in the kitchen, etc….
And computing that difference in sales price over 30 years means you really lost out! Plus, when you get ready to sell this house, you’re selling at a lesser price because your home doesn’t have the same features as the ones in the higher price range.
Before you end up in a bidding war with other buyers, talk to a good lender NOW! Find out how much house you can buy….and STOP WAITING! We are already seeing a faster pace from buyers who realize these low rates won’t be around forever.
Contact me via email or phone if you need a good lender’s name and contact info…Then let’s go shopping!