The Cost of Waiting


You’ve heard that “time is money” and it actually applies to our current real estate market. If you’re considering buying someday soon, there’s a definite cost to waiting.

For most people, the true cost of purchasing a home boils down to the property’s purchase price and the interest rate you can secure for your loan. This past year both those factors have been on the rise:

Rates have been rising since the 2016 election.

That might not sound like it would have a significant impact, but let’s take a look at an example of a $250,000 home with a 1% increase in interest rates. Those increases are likely to result in an extra $188.50 in your monthly payment, according to one of the mortgage pro’s we work with. That’s $2,262 a year and a total of $67,860 extra over the life of a 30-year loan. This is, by no means, reason to panic. But it’s absolutely something to consider if you’re thinking of buying in the near future. Looking for a $500,000 home? Double those numbers. (Of course the impact will vary depending on the percentage you put down).

What’s important here? If you’re not ready, don’t let these factors sway you. But if you’re on the fence, it might be wise to consider hopping into the market.

Are you thinking about a move? I’d love to answer any questions you have and help you formulate the best strategy for getting you into your ideal home!