Waiting To Buy A Home Could Cost You
It’s a crazy market out there! With the surge in demand and lack of inventory finding the right home can be frustrating and take a lot of patients. It can be easy for home buyers to throw in the towel and put off buying a home with the hopes things will get easier. Don’t assume waiting a few years to buy will save you money. Here is a look at how the cost of waiting can add up when mortgage rates and home prices rise.
| Purchase Price | Mortgage Interest Rate | Monthly Mortgage Payment | Annual Home Appreciation Projection | |
|---|---|---|---|---|
| August 2021 | $ 150,000 | 3.25% | $620 | |
| August 2022 | $ 160,776 | 3.625% | $697 | 7.18% |
| August 2023 | $ 165,991 | 3.875% | $742 | 10.66% |
| August 2024 | $ 174,068 | 4.375% | $826 | 16.05% |
*Assumptions 5% down, conventional financing, forecast based on MBA Mortgage Rate and MBS Highway Home Value Projections for Kalamazoo County, MI
| Purchase Price | Mortgage Interest Rate | Monthly Mortgage Payment | Annual Home Appreciation Projection | |
|---|---|---|---|---|
| August 2021 | $ 250,000 | 3.25% | $1,034 | |
| August 2022 | $ 269.693 | 3.625% | $1,168 | 7.88% |
| August 2023 | $ 278,745 | 3.875% | $1,245 | 11.5% |
| August 2024 | $ 291,538 | 4.375% | $1,383 | 16.62% |
*Assumptions 5% down, conventional financing, forecast based on MBA Mortgage Rate and MBS Highway Home Value Projections for Kalamazoo County, MI
| Purchase Price | Mortgage Interest Rate | Monthly Mortgage Payment | Annual Home Appreciation Projection | |
|---|---|---|---|---|
| August 2021 | $ 350,000 | 3.25% | $1,447 | |
| August 2022 | $ 377,570 | 3.625% | $1,636 | 7.88% |
| August 2023 | $ 390,243 | 3.875% | $1,743 | 11.50% |
| August 2024 | $ 408,154 | 4.375% | $1,936 | 16.62% |
*Assumptions 5% down, conventional financing, forecast based on MBA Mortgage Rate and MBS Highway Home Value Projections for Kalamazoo County, MI
In summary, if mortgage rates and home prices rise as projected it can be rather costly to put off purchasing a home. Sure there are many life events and other reason to hold off on purchasing. But from a pure numbers perspective the time to buy is now. The place to start the process is right here with the online mortgage application.
**Down payment and terms shown are for informational purposes only and are not intended as an advertisement or a commitment to lend. Actual rate, annual percentage (APR) and other figures may vary. Please contact us for an exact quote and for more information on fees and terms. Not all borrowers will qualify. Equal Housing Lender. NMLS #110139. A division of Amerifirst Financial Corporation. amerifirst.com
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