01/12/2015
There are many people who debated purchasing a home over the past year, but ultimately did not. Whatever their reasons were for their conclusion, let’s look at if their decision to wait made sense. In 2014 A 30 year fixed rate on January 2, 2014 was 4.53%. As seen on the chart below, a mortgage payment (including principal and interest) for a $250,000 home would have been $1,271.17. Even though interest rates dropped below 4% and ended 2014 at 3.87%, the price of homes have increased by 4.8% over the same time. Now, that same home is $12,000 more and now costs $262,000. Recent reports by Freddie Mac show the average 30-year fixed rate is currently 3.73%. Many may say, waiting a year made total sense since it seems they’re saving $60 a month. And they’d be right, over the course of the year they saved $729.36. But what wasn’t realized is the price of the home they now want to purchase increased by $12,000. Even if they put a 5% down payment down, they will have to come up with
There are many people who debated purchasing a home over the past year, but ultimately did not. Whatever their reasons were for their conclusion, let’s look at if their decision to wait made sense. In 2014 A 30 year fixed rate on January 2, 2014 was 4.53%. As seen on the chart below, a mortgage …