What's the Cost of Waiting?

Are you struggling to decide if you should take advantage of low interest rates and buy a home now, or wait and see what the market does?

Let's look at how waiting would impact your financial situation.  Here are the assumptions made for this example:

• - The Experts are right - mortgage rates will be 3.18% at the end of the year
• - The Experts are right - home values will appreciate by 5.9%
• - You want to buy a home valued at $350,000 today
• - You decide on a 10% down payment

Here's the financial impact of waiting:

• - You pay an extra $20,650 for the house
• - You need an additional $2,065 for a down payment
• - You pay an extra $116/month in your mortgage payment ($1,392 additional per year)
• - You don't gain the $20,650 increase in wealth through equity build-up

Bottom Line:

There are many things to consider when buying a home.  However, from a purely financial aspect, if you find a home that meets your needs, buying now makes much more sense than buying next year.