Insider Hack – Buy Now or Wait?
It is the ultimate question: Should I buy now or wait?
If you’re in the market for a new home, you might be wondering whether now is the best time to buy or if it’s worth waiting for interest rates to drop. It’s a common dilemma, and one that can have significant financial implications in the long run.
At first glance, waiting for interest rates to decrease might seem like a prudent move. After all, lower interest rates typically mean lower monthly mortgage payments, right? However, when you take a closer look at the numbers, you might be surprised to find that waiting could actually end up costing you more.
Let’s break it down with a hypothetical scenario:
Today
- Sale Price: $250,000
- 20% Down Payment: $50,000
- Interest Rate/APR: 7.50%/7.637%
- Mortgage Payment: $1,398 (Principal and Interest)*
In 1 Year
- Sale Price: $262,000
- 20% Down Payment: $52,400
- Interest Rate/APR: 6.50%/6.621%
- Mortgage Payment: $1,325 (Principal and Interest)*
In this scenario, waiting just one year to buy could cost you significantly more. While the sale price of the home may increase by $12,000 over the course of a year, the extra money needed for the down payment also increases by $2,400. Additionally, the mortgage payment savings by waiting a year is only $73 per month.
So, what does this mean for you? Essentially, by waiting, you’re not only missing out on potential appreciation in the value of the home, but you’re also facing higher upfront costs and potentially higher monthly payments in the long run.
Buying now, on the other hand, allows you to start building equity immediately. Even if interest rates were to drop slightly in the future, the overall cost of waiting could outweigh any potential savings on lower monthly payments.
At Ruoff Mortgage, we understand that the decision to buy a home is a big one, and it’s important to carefully consider all of your options. That’s why we’re here to help. Our team of experts can work with you to compare your options and find the best solution for your unique financial situation.
Don’t let the fear of rising interest rates or fluctuating market conditions hold you back from achieving your homeownership dreams. Talk to a Ruoff Mortgage expert today and take the first step toward securing your future.
Consider these things when deciding if you should buy now or wait.
*Scenario shown for “Today” is for a 30-year conventional fixed-rate loan program. Sales price $250,000; 20% down payment; mortgage amount $200,000. Mortgage payment shown reflects monthly principal and interest only and does not include the cost of property taxes or homeowner’s insurance.
Why Does RE/MAX Results Stand Out Among the Competition?
Simply put: Relationships. We pride ourselves not only in our professional service but more importantly in the personal touch we bring to our business. Has an agent/lawyer/contractor/vendor ever treated you like you were just another paycheck? The reason our clients come back time and again and refer all their friends and family to us is because they know we are part of the family.
Genuinely caring about the people we serve enables us to do things other agencies can’t. Rest assured, we will ALWAYS have your best interest at heart and work vigorously to get you the best deal possible on your home or business.
The relationships we build with our clients enable us to work 100% by referral. The reason we are able to give top notch service to our clients is because our clients refer us a constant stream of quality family and friends to assist in their real estate needs. While other agents are out making cold calls and chasing “potential” leads, we are freed up by our referral base to service our clients like no other broker can. We are never too busy for your referrals!
Want to experience the difference for yourself? Call or text me today at 260-579-1516.
“Professional Service with a Personal Touch“
We’re Here To Help
Are you or someone you know considering a home purchase? Don’t hesitate to call or text me, Michael Archbold, at 260-579-1516 and I will connect you with the best mortgage professionals in the business who can get you your score, discuss ways to improve it if necessary, and put you on the path to home ownership. Click here to read more about our Buyer Services. Click here to browse listings NOW! Looking to sell your home? Call today to set up an appointment to begin developing your customized marketing plan. Click here to read more about our Seller Services.
Hoosier Home Listings by RE/MAX Results is a full service real estate Web site serving Northeast Indiana. We assist residential and commercial clients in locating, buying, and selling real property in the State of Indiana including but not limited to the counties of Allen, Huntington, Wells, Adams, Whitley, Wabash, Kosciusko, Noble, Dekalb, Lagrange, Steuben and cities including Fort Wayne, Decatur, Bluffton, Huntington, Warsaw, Columbia City, Butler, and Angola. RE/MAX Results is an Equal Housing Opportunity company.
Hoosier Home Listings – Insider Hack – Spring Home Maintenance Checklist..
… brought to you by Michael Archbold, Hoosier Home Listings, and RE/MAX Results.
The consummate professional, Michael Archbold (Associate Broker, REALTOR, ePro) brings a diversified background to the world of real estate. Born and raised in Fort Wayne, Mike graduated Wayne High School in 1992. He received bachelors degrees in Accounting in 1997 from Indiana University and Information Technology in 2005 from Indiana Wesleyan University. Mike comes to RE/MAX with more than 20 years of experience in sales and accounting. He began his career in real estate in 2000 as an investor.
