What If I Wait Until Next Year to Buy?

First-time homebuyers are flocking to the housing market in greater numbers than any time in the last few years. Renters who are ready and willing to buy are now realizing that they are also able to as well. Many first-time buyers are Millennials (born between 1981 – 1997).

If you are one of the many in this generation who sees your friends and family diving head first into the real estate market, and wonder if now is the time for you to do the same, keep reading!

The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time.

Let’s look at an example of what the experts are predicting for the upcoming year, and what that really would mean for you. Let’s say you’re 30 and your dream house costs $250,000 today. Right now mortgage interest rates are at or about 4%.

Your monthly mortgage payment (principal & interest only) would be $1,193.54.

But you’re busy, you like your apartment, and moving is such a hassle. You decide to wait until next year to buy. CoreLogic predicts that home prices will appreciate by 5.1% in the next 12 months; this means that same house you loved now costs, $262,750.

Freddie Mac predicts that over this same period of time, interest rates will be a full point higher at 5.0%. Your new payment per month is now $1,410.50.

The difference in payment is $216.96 PER MONTH!

That’s basically like taking $8 and tossing it out the window EVERY DAY!

Or you could look at it this way:

That’s your morning coffee everyday on the way to work (average $2) with $10 left for lunch!
There goes Friday Sushi Night! ($50 x 4)
Stressed Out? How about a few deep tissue massages with tip!
Need a new car? You could get a brand new car for $217 a month.
Let’s look at that number annually! Over the course of your new mortgage at 5.0%, your annual additional cost would be $2,603.52!

Had your eye on a vacation in the Caribbean? How about a 2-week trip through Europe? Or maybe your new house could really use a deck for entertaining. We could come up with 100’s of ways to spend $2,603, and we’re sure you could too!

Over the course of your 30 year loan, now at age 61, hopefully you are ready to retire soon, you would have spent an additional $78,105.60, all because when you were 30 you thought moving in 2015 was such a hassle or loved your apartment too much to leave yet.

Or maybe there wasn’t an agent out there who educated you on the true cost of waiting a year. Maybe they thought you wouldn’t be ready. But if they showed you that you could save $78,000 you’d at least listen to what they had to say.

They say hindsight is 20/20, we’d like to think that 30 years from now when you are 60, looking back, you would say to buy now…

91e7bc62 eabe 4b16 91d4 bd272e3e83c8 bb772437 bc30 4a9a b797 81c8d03ffe1c 6ed70759 9d8b 4b74 bcae 0c86e64b6c05 2ec243c9 2e84 4cbc 8868 df5486a09143 e75ccd58 8009 4e79 b872 8f8036e51b9c 81f68b3b dbaf 4aa6 abd0 22c164c21935 99c9bef8 9984 4158 8165 6913e1771889 15b6e0c9 569d 436c 813b 535d38eb856a 4ea10ead b480 41b1 9aa7 9c2b694be44a eaa700fe 1b1d 4a97 b870 61d786dbace9 f48c2f9d 9e2a 4bf1 975e 504d62b34393 b8fdebbf b881 4ff3 9ad5 c19d032a974a f0371dba 8c00 49d7 b51c 855f8c84bc5d 5b71baa8 9a3a 4f02 8551 b25649029af4 e6819f48 304b 4386 8d18 2cda5ae37fb7 adb70784 bd0d 4070 b1c2 f682d953c0c5 ab9ca49e 707b 4a78 b376 12544d6ba1c6 8cb615f4 5804 436b a731 68965646948a fbfa2365 8e45 45f4 a4f3 84861120901f f772c637 57e4 4297 bdf9 773e78c27ff7 6ec2fd7b 9914 4877 9c94 17d2bcf5f1f6 45f7c343 498a 4fb8 b5f9 339fea21fe9f 1b2a5316 ae27 487c 96e7 eba2fa339318