The Actual COST of Waiting
Throughout 2013, we emphasized the difference between the ‘price’ and the ‘cost’ of a home. We explained that a purchaser should not only be aware of rising home values but should also look at what was about to happen to mortgage interest rates.
Looking back, we can now establish exactly what it cost a buyer who waited to buy a home instead of buying at the end of 2012.
Waiting resulted in an increase in the monthly mortgage payment of over $200.
Now let’s look at how that adds up over the life of a 30 year mortgage:
We can’t change the past. However, what occurred in the last twelve months should give us some direction when making a decision over the next twelve months. Here is what it may cost a buyer at the end of 2014.
Over $200 more a month than if they purchase now. Help your purchasers (whether they are first-time buyers or move-up buyers) make an informed decision when it comes to the timing of their purchase.