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What is the Cost of Waiting Until Next Year to Buy?

Wednesday, December 13, 2017   /   by Amy McLeod

What is the Cost of Waiting Until Next Year to Buy?


We recently shared that over the course of the last 12 months, home prices have appreciated by 7.0%. Over the same amount of time, interest rates have remained historically low which has allowed many buyers to enter the market.


As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.


The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 4.7% over the next 12 months.


What Does This Mean as a Buyer?


If home prices appreciate by 4.7% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:



Bottom Line


If buying a home is in your plan for 2018, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.


Let’s get together - 971.208.5093 or mcleodgroupoffice@gmail.com.


By: KCM Crew


  amy mcleod, mcleod group network, first time home buyers, buying a house, homebuyers, home values, owning a home

The McLeod Group Network - KW Capital City
Amy McLeod
1900 Hines St SE, Suite 220
Salem, OR 97302
971-208-5093
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Lighthouse Mortgage
Phil Gerstner
110 Wallace Rd. NW
Salem, OR 97304
503-871-4968
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Homeside Mortgage
Sales Manager, AVP
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Aaron Memmott
Finance of America
Mortgage Advisor
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NMLS# 1048117
Direct: (503) 718-9876
Cell: (503) 551-1115
Fax: (855) 639-2956

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Elizabeth Smith
Caliber Home Loans
elizabeth.smith@caliberhomeloans.com
NMLS# 228191
Cell: 503-910-0415
eFAX: 844-538-4687

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