Are you on the fence about whether or not to wait for prices to come down to purchase a home today?
Even if prices fall 5%, waiting to buy may result in higher monthly payments due to the likelihood of rising interest rates as illustrated in the examples below.
In the first example, you saved $23,000 up front by waiting it out. However, you will end up paying $117 more per month. If you do the math, $117 over the course of 30 years (360 payments), equals $42,120. So if you “WAIT?” for the purchase price of $427,500 and you add on the extra payments of $42,120, this equals $469,620. That is more than what the house is worth “NOW!”
The same can be said in example two. You save $37,500 up front. But that is a $192 difference in monthly payments. Which equals $69,120 more over the course of 30 Years. Again, the total is more than what the house is worth “NOW!”