Figuring out the best time to buy a house is probably the biggest decision you will make. It can be an exciting prospect to think about purchasing your dream home. However, you may be on the fence, wondering if now is a good time or should you save more toward a down payment?
Image courtesy of rhfunding.com.
It Typically Makes More Sense to Buy A House Sooner Rather than Later
We have an answer for our clients based on data gleaned from CoreLogic, Freddie Mac, and Bankrate: it often makes sense to buy now rather than to wait. The biggest reason is that we don’t really know what will happen with interest rates and as interest rates rise, so do mortgage payments. With a lower interest rate, you can either get a lower payment or more house.
The infographic above shows what a difference a year can make to the costs associated with buying a home. Home prices, interest rates, and mortgage payments are all set to increase in 2017. CoreLogic projects that home prices will go up an average of 5.3% in 2017. Freddie Mac projects that interest rates will go from 4.01% today to 4.80% in Quarter 1 2017. And Bankrate projects that mortgage payments will increase from an average of $1,194.98 to $1,381.18.
Advantages to borrowing for your down payment so you can buy your home sooner:
- You will have the opportunity to buy at a time before home prices and/or interest rates may increase beyond what you can afford.
- You will begin paying off your home earlier, which can lead to substantial savings long-term.
- If you are renting, you are wasting money that could be put toward paying down your mortgage and helping you own your own home earlier.
If you buy now rather than waiting another year, take a look at the infographic’s display of what you could be doing with the extra money you will save over the years!
If you are thinking about buying, call Real Estate Experts at 919-928-5131 and talk to one of our buyer specialists, or go online and search for homes for sale by area and set up an automatic home search. If you know what neighborhoods you are interested in, you can search by neighborhood, as well.