Buy Now Or Buy Later

Dated: 05/13/2018

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It’s not unusual for buyers to struggle over the decision of when to purchase. Is it better to wait or is it better to purchase today? 

It is likely that you will be better off purchasing today rather than waiting if you are viewing this decision from a financial perspective.

Today we are in a rising market environment. In addition, we have rising mortgage rates. While we cannot predict the future, most experts believe that the trend for both of these factors will continue to be higher for the foreseeable future.

As mortgage rates rise, purchasing power goes down. The more you have to spend on the cost of borrowing money (interest rates), the less you have available to go towards your principal.

In addition, during rising market conditions, the market value of real estate is rising. The combination of these two factors can have a dramatic impact on a buyer’s long-term financial position.Image title

As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Reporthome prices will appreciate by 5.2% over the next 12 months.

If home prices appreciate by 5.2% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:


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And while you wait to buy, rent keeps on rising, adding yet another cost consideration to waiting.


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If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

Of course, there are many other factors to consider such as how long you plan to stay in the home and other personal considerations.  

Chris DeLoach     843-270-1272   [email protected]

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Chris DeLoach

Serving Charleston buyers and sellers since 2001 Buying a home – or selling a home – can be one of the most exciting times of your life. My goal to provide you with the best client-centered, po....

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