The Cost of Waiting to Buy
More has been lost due to indecision than was ever lost to making the wrong decision. Interest rates have as much effect on housing costs as price. When they’re both trending upward, it can be very expensive to wait.
In some cases, there can be legitimate reasons for postponing a purchase: saving for a down payment, improving your credit score, waiting to find out about a possible job transfer. However, a buyer who waits for any other reason may face the possibility of rising prices and interest rates.
For example, if the price of a $250,000 home increases by 5% (to $262,500) and the interest rate goes from 4.5% to 5.5%, monthly payments would increase by $224. The additional cost over a 7-year period would be close to $19,000. Wouldn’t you rather spend that $19,000 on something else?
Indecisive buyers should consider that waiting to buy can make a big difference in their monthly payments and overall cost. Use the Cost of Waiting to Buy calculator to find out how much indecision may be costing you.
Sea Scape Properties can help you find the right home to buy before interest rates begin to climb... contact us today!