Buy Now or Wait? The Ultimate Homebuyer Dilemma
Buy Now or Wait? – Interest rates have recently dropped from 7% to 6%, and many potential homebuyers are wondering if now is the perfect time to buy or if they should wait for rates to decrease even further. While waiting for lower rates may seem appealing, it could actually cost you more in the long run. Let’s break down the pros and cons of buying now versus waiting, based on real numbers.
Buying Now: The Pros and Cons
Pros:
Move-In Ready: You don’t have to wait to start enjoying your new home. Plus, the equity you build over time can be a strong financial asset for your future.
Build Equity Sooner: Suppose you find a home for $280,000 today. With a 10% down payment, you’d finance $252,000. At the current 6% interest rate, your monthly mortgage payment would be approximately $1,508.33. In just three years, you could build significant equity in your home—while enjoying the comfort and stability of homeownership right away.
Avoid Rising Home Prices: Home prices are expected to continue rising. If you buy now, you’ll lock in today’s prices and avoid paying more for the same home down the road.
Cons:
- Possibility of Further Rate Drops: While the recent rate drop to 6% is promising, rates could potentially drop further. However, waiting for another rate decrease might cost you more in the form of higher home prices and missed equity-building opportunities.
Waiting for Rates to Drop Further: The Pros and Cons
Pros:
- Potential for Lower Interest Rates: If rates continue to decrease, you could secure a lower interest rate and save on monthly payments. However, there’s no guarantee when, or if, rates will drop further.
- Slightly Lower Monthly Payment: If rates drop further and you purchase a home in a few years, your mortgage payment could be slightly lower than if you buy now.
Cons:
- Rising Home Prices: Waiting could mean paying more for a home. If home prices increase, you may find yourself paying $306,000 (or more) for the same property that costs $280,000 today. That additional cost would lead to a higher mortgage and down payment.
- Lost Equity & Rent Payments: The longer you wait, the more money you’ll spend on rent. Instead of building equity in your own home, you’ll be handing over rent checks with no return on investment. By buying now, you can start building equity and wealth immediately.
- Missed Opportunity to Enjoy Your New Home: Delaying your home purchase means delaying your enjoyment of a home that’s truly yours. Instead of waiting for the “perfect” interest rate, you could be settling into your new space and benefiting from homeownership today.
Conclusion: Why Buying Now Could Be the Smart Move
With interest rates recently dropping from 7% to 6%, now may be the ideal time to buy a home. Waiting for further drops could end up costing you more due to rising home prices and lost equity-building opportunities. By purchasing now, you can lock in a lower interest rate, secure today’s home prices, and begin enjoying the financial and personal benefits of homeownership right away.
Buy Now or Wait? The Ultimate Homebuyer Dilemma
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.
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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… Buy Now or Wait? The Ultimate Homebuyer Dilemma…
… 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.
