Should I Buy Now or Wait?

And that is the million dollar question! I decided to run some scenarios to see what if, assuming a 20% downpayment...

If you are looking at a $200,000 mortgage and can still qualify for a 5% interest rate, the payment would be $1,073 per month.

$200,000 mortgage amortized over 30 years
Increase	Rate	Payment	Payment Increase	Increase over Term
1/4%	5.25%	$1104	$30.76	$11,075
1/2%	5.5%	$1135	$61.93	$22,297
3/4%	5.75%	$1167	$93.50	$33,661
1%	6.0%	$1199	$125.46	$45,165

A $500,000 mortgage at 5% would have a monthly payment of $2684.

$500,000 mortgage amortized over 30 years
Increase	Rate	Payment	Payment Increase	Increase over Term
1/4%	5.25%	$2761	$76.91	$27,688
1/2%	5.5%	$2838	$154.81	$55,741
3/4%	5.75%	$2917	$233.76	$84,152
1%	6.0%	$2997	$313.64	$112,912

But wait, have we hit bottom yet? What if home prices fall another 5%?

For a $300,000 home, with 20% down and at 5% amortized over 30 years you would have a monthly payment of $1,288.37

	Now	Waiting
Sales Price	300,000	285,000
Mortgage	240,000	228,000
Current Rate vs. Possible % Increase	5%	6%
Monthly Payment	1,288	1,366
Payment Difference		78.
Additional Cost for 7 Years		6,602
Additional Cost for 30 Years		28,297

For a $700,000 home:

	Now	Waiting
Sales Price	700,000	665,000
Mortgage	560,000	532,000
Current Rate vs. Possible % Increase	5%	6%
Monthly Payment	3,006	3189
Payment Difference		183
Additional Cost for 7 Years		15,406.
Additional Cost for 30 Years		66,026

If we only had a crystal ball? Contact us if you would like us to calculate the numbers for your particular situation!

All information in this newsletter is deemed accurate but not guaranteed.