Buy Now or Buy Later? Some Things to Consider

Blog Post Image
Real Estate

With the current Real Estate market being such a hot seller's market, many people wonder if it makes sense to wait.  Some pros to waiting for the market to slow down could include: more homes to choose from, less competition from other buyers, and mortgage rates may still be low.  Some cons to holding off on that home purchase may include:  an increase in home prices and/or higher mortgage rates.  If you wait until the market really slows down and you want to buy in an area where home values are not increasing, the bank may require a larger down payment.  Talk with a local lender in the area where you are looking to buy.  They can let you know the current mortgage conditions and help you to look at what it might mean if housing prices and/or mortgage rates increase.

If you took a loan for $450,000 at 2.89%  your principle & interest payment would be approximately $1,871.  If you wait a year and home prices increase by the predicted 9% for 2022, your payment becomes $2,039.  And if interest rates increase slightly to 3.25%, the payment would be $2,135.  (Please note that these number are for demonstration purposes only.  Always talk with a mortgage lender to understand the total costs associated with a home loan.)