In today’s ever evolving market, it’s crucial to remain informed about how waiting might impact your plans. Life presents various challenges and considerations, and I’d like to help you explore the potential outcomes of delaying your decision.
The first thing I’d like to take you through is a cost of waiting analysis:
In a scenario where a buyer is purchasing a $400,000 property with a 10% down payment, a loan of $360,000, and a 6.99% interest rate with half a point mortgage insurance, waiting a year can result in a $15,400 increase in the property’s value due to a 3% home appreciation rate.
However, waiting also means missing out on a year’s worth of mortgage payments, which adds up to $28,716. Additionally, if interest rates increase by just 0.25%, the buyer would end up paying an extra $8,786 in interest over the life of the loan. Therefore, in this scenario, waiting a year would cost the buyer $22,102.
Waiting 2 years could cost $44,204.
Waiting 3 years could cost $66,306.
And so on…
Not to mention the equity build up you could be missing out on each year, and all of the tax benefits that come with owning that home as well.
I want to emphasize that I am here to help you navigate the real estate market and find the perfect home that fits your needs and budget. While the timing of your purchase is a personal decision, it’s essential to weigh the financial and lifestyle factors associated with waiting.
If you’re ready to take the next steps toward homeownership or have any questions about the current market conditions, please don’t hesitate to reach out to me. I’m here to provide expert guidance and assist you in making an informed decision.
Segreto Group 941-444-2270