The SURPRISING cost of waiting to buy a house.
The cost of waiting to buy a house could cost YOU. A lot...
So, you're thinking about buying a house. And thinking, and thinking... Well, now may be the time to pull the trigger. Chris Lord of Caliber Home Loans and I go over a scenario of HOW MUCH $$$ it could cost you, if you waited to buy. The results are startling...
Waiting to buy a house...
- While I will NEVER pressure someone to buy a house, I just want to map out a couple of scenarios for you.
- If you're on the edge of buying, consider these two situations and how they could affect what you purchase.
How a 1% interest rate jump affects your purchasing power...
- Okay, let's break this down. We are SO SO gifted with low interest rates right now, that it'd be crazy to not take advantage (if you're in a situation to). In the 80's, interest rates were close to 15%. Now? We're LOW 4%.
- Interest rates are slated to rise.
- Say you're locked in right now and pre approved for $750,000.
- If interest rates jumped up 1%, your new pre approval price would be $675,000.
- That's $75,000 of lost purchasing power. This is a big deal in our market and it DOES make a difference.
Let's break this down. Last year we had ~13%+ in most of the area (growth wise).
Conservatively, let's look at a 10% growth this year.
$750,000 + 10% growth = $75,000.
This means, the house that's now listed for $75,000 will now be $825,000.
Couple this with the interest rate hike, that $750,000 house, is now going to be a $625,000 (current) house.
Think about it...
Are you thinking about starting your home buying journey? Reach out, we can help you.