The Cost of Waiting to Buy a Home

I wanted to talk to you just real briefly about something that people have been asking me over and over, the past couple of weeks. Should I wait until next year to buy a home and see if the market changes or I want to rent a home first, kind of get a lay of the land and then buy something next year. People, let me tell you if your end goal is to own a home, Now is the time to do it. We have rates that are still lower rates, but when you couple that with the home prices that are continuing to rise, and I will tell you prices this year, the average out of Freddie Mac, Fannie Mae, and the Mortgage Banker’s Association, the average of those three predictions is 6.27%.

That means that if a home sells today for $350,000 next year, at this time, it could sell for $371,945. That means that if you wait, you’d pay an additional $21,945. Now let me tell you what that means when the mortgage rate hits as well. It makes a big difference in a monthly payment. If your home price is more and the mortgage rate is more, what does that mean for you? So in 2021, if you take that same $350,000 home with a 30-year fixed-rate at 2.86%, and let’s say you put down 10%, by the way, it’s a whole different discussion. You don’t have to do 20%. The average right now is about six, but we’re going to say 10%. According to the mortgage calculator from smart asset, your monthly payment for that $350,000 home today, including your principal, your interest, estimated home insurance (it’s different for every home), and the taxes for your area. All the other things that are included in that, Your payment would be about $1,899 a month for $350,000 home. If you wait, you buy that same home. Next year, it’d be approximately $371,945 for that same house, with that same kitchen, that same backyard, everything. But the interest rate would be approximately 3.7%, which then increases your payment by $267 a month. That means that payment of $1,899 would now be $2,166 a month just for waiting for the same house for something that you already want to do.

The bottom line is if you want to be a homeowner, and you really are thinking you want to make that happen before everything kind of goes up because as the interest rate goes up, your buying power kind of comes down. Especially if you’re a first-time buyer, that makes a big difference to you.

So let me help you. I would love to help you, educate you a little bit & point you in the right direction. Let’s see what your circumstance is. Help answer any questions that you have.

Reach out to me at 719-648-4539. My email address is [email protected].
I would love to have a conversation with you and just see what your goals are and see if now is the time for you to become a homeowner. Thank you so much.