For the people who buy now, they have certain assurances… they know what their income is and they know what they can approve for. Ask yourself this question, “Will I still be able to afford a home if I wait based on this year’s and next year’s estimated real estate appreciation as well as the expected higher interest rates?”
TWO HOMEBUYING SCENARIOS
IF BUYING NOW
House price of $300,000
Loan amount of $240,000
Average interest rate (estimated) of 5.5%
Monthly principal and interest payment of $1363.00
Monthly property tax payment of 2.75% $687.50
Monthly homeowner’s insurance payment of $190.00
Total monthly home payment of $2240.50
IF BUYING LATER
10% APPRECIATION RATE
House price of $330,000
Loan amount of $264,000
Average interest rate (estimated) of 6.5%
Monthly principal and interest payment of $1668.66
Monthly property tax payment of 2.75% $756.25
Monthly homeowner’s insurance payment of $210.00
Total monthly home payment of $2634.91
QUESTION TO ASK
“Will I be able to afford this year-over-year increase of $394.41 a month?”