Put off buying a home right now?
History shows that the best time to make a purchase decision is when supply and demand are in your favor. It has not been the case in real estate for most of the past year. So why are buyers on the sidelines? Hoping to get a better deal? Waiting (AGAIN) for better terms?
What if I told you that you can MAKE those terms better right now?
Forbes magazine has spelled out some of the advantages to buying now rather than waiting. Take a family shopping for a $300,000, 30-year, fixed-rate mortgage. If banks were offering them an interest rate of 3.5%, the total lifetime cost of the mortgage would be approximately $485,000, with nearly $185,000 of that accounting for interest charges. Monthly payments would clock in at about $1,340.
Let’s say the Fed had raised interest rates by 1% before the family got a loan, and the interest rate offered by banks for a $300,000 home mortgage loan rose to 4.5%. Over the 30-year life of the loan, the family would pay a total of more than $547,000, with interest charges accounting for $247,000 of that amount. Their monthly mortgage payment would be approximately $1,520.
In response to this increase, the family in this example might delay purchasing a home, or opt for one that requires a smaller mortgage, to minimize the size of their monthly payment.
Now, we’re in the Bay Area, so using this example, triple the price and mortgage payments to understand the numbers better.
The question is: Do you wait to make a home purchase at today’s prices and mortgage rates or wait?
What if your agent could get you the best of both worlds? Meaning, a lower purchase price AND a lower interest rate today? Yes! This is very possible with experienced agents and strategic offers!
AND what if with inflationary pressure, the mortgage rates came down later this year? It’s possible to get a free refi and save even more!
Want to learn how? Call me today and let's spend 10 minutes on the phone to see if you are ready to win in this market.
Until next time …
