Don’t miss the mortgage boat waiting for the yacht! 
Attention home buyers who are waiting to buy that home for sale when property values are at the very bottom. That may not be the best strategy for saving you money.
With mortgage rates at an all-time low, it’s an amazing time to buy a home, particularly coupled with the fact that home prices have declined dramatically over the past 3-4 years. Yet still, there is hesitation in the market. The Mortgage Bankers Association predicts a 3.5% price decline in housing prices between now and mid-2012 AND a half-percentage point increase in mortgage rates!
As crazy as it seems, that means your mortgage payment for the house purchased NOW could be LESS than if you wait until next year…even if the purchase prices falls 3.5%! Yes, it’s true, here’s the math:
Purchased now:
$150,000 purchase price
3.5% down payment
4.09% interest rate on a 30 year fixed rate mortgage
Monthly payment: $698.59
Purchased Mid-2012
$144,750 purchase price (reduced by the forecast 3.5% price decline)
3.5% down payment
4.59% interest rate on a 30 yr fixed rate mortgage (adding forecast .5% increase)
Monthly payment: $715.74!
What a fabulous way to save!!!!
A home purchased now may actually save you money over waiting until next year! Cha Ching!
The lesson here is obvious…don’t get greedy if you’re contemplating buying a home, but you’re waiting for the “bottom” of the housing market! You may miss the best mortgage rates of our lifetime!
Don’t miss the boat waiting for the yacht!
