Isn’t it time to buy a house?
If you have been considering the purchase of a house, but you have not decided on the best time to buy, there may be something new to consider. You may have noticed, interest rates are rising. The news is telling us we will never again see a 4% interest rate. So, maybe it is time to consider, how much are you willing to loose in your purchase price as interest rates begin to rise?
Your Interest Rate Has Considerable Effect on Your Payment.
To purchase a house with a $100,000 loan at a 5% interest rate for 30 years, the payment would be $536.82. If you wait until the interest rate is 6%, the payment would be $599.55. What would you rather do with that $62.73 per month for the next 30 years, a total of $22,582.80. If you wait until the interest rate is 7%, the payment would be $665.30. This is a difference of $128.48, which is $46,252.80 over 30 years.
As the loan amount increases, the difference in payment gets ever more dramatic.
If your loan amount is $200,000, you would double the numbers given above.
Here is another way to look at it. If you want to keep that $536.82 payment at 5%, but you wait until the interest rate has risen to 6%, you will need to shop for a house with a price where the loan amount will be $89,537.35 instead of shopping for a $100,000 house.
These are significant numbers.
There are some valuable decisions to be made right now which will result in more money in your pocket, and a bigger, more valuable house.
Call me and let’s get you into your new home while low interest rates will get you closer to the home you have dreamed of owning.