What is the Cost of Waiting Until Next Year to Buy?
We recently shared that over the course of the last 12 months, home prices have appreciated by 7.0%. Over the same amount of time, interest rates have remained historically low which has allowed many buyers to enter the market.
As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.
The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 4.7% over the next 12 months.
What Does This mean as a Buyer?
If home prices appreciate by 4.7% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:
Bottom Line
If buying a home is in your plan for 2018, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.
To view original article, please visit Keeping Current Matters.
6 Foundational Benefits of Homeownership Today
As we think about the future and what we want to achieve beyond 2021, it’s a great time to look at the benefits of owning a home.
Do I Really Need a 20% Down Payment to Buy a Home?
Be sure to work with trusted professionals from the start to learn what you may qualify for in the homebuying process.
Why Owning a Home Is a Powerful Financial Decision
In today’s housing market, there are clear financial benefits to owning a home including the chance to build your net worth.
Want to Build Wealth? Buy a Home This Year.
A financial advantage to owning a home is the wealth built through equity when you own a home.
Turn to an Expert for the Best Advice, Not Perfect Advice
An agent can give you the best advice possible based on the information and situation at hand.
What Happens When Homeowners Leave Their Forbearance Plans?
If we do experience a higher foreclosure rate, most experts believe the current housing market will easily absorb the excess inventory.
What’s the Difference between an Appraisal and a Home Inspection?
Here’s the breakdown of each one and why they’re both important when buying a home.
Why Moving May Be Just the Boost You Need
There’s logic behind the idea that making a move could improve someone’s quality of life
Owning a Home Is Still More Affordable Than Renting One
In 2020, mortgage rates reached all-time lows 16 times, and so far, they’re continuing to hover in low territory this year.
Should I Wait for Lower Mortgage Interest Rates?
Borrowers are smart to take advantage of these low rates now and will certainly benefit as a result.