It isn’t always a good time to buy a home in Roseville. In fact, just because it’s a good time for your friends, family members or neighbors doesn’t mean it’s a good time for you. There are a lot of things to think about when you’re deciding whether or not to buy a home now or if you should wait.
You’re going to see a lot of advice online that now is a good time to buy; and there’s sound advice behind that. It makes sense for a lot of people and may make sense for you too.
Interest rates will be going up this year and so will home prices. When you buy a home, you’re actually buying a mortgage too. The interest rate of that home mortgage will determine how much of a house you can buy. The higher the interest rate, the less house you can afford. In other words, you’ll be buying a smaller home, in a less desirable neighborhood or one that doesn’t have as many upgrades as you could afford at a lower interest rate. A lower interest rate equals a lower house payment.
In this infographic, you can see that a 4.3% interest rate on a home costing $250,000 will cost you $1,237.18 per month.
If you wait until rates go to 5.1% – which is expected to happen in the next year – you’ll see that that $250,000 home will increase in value to $260,000 in the next year or so and end up costing you $1,415,74 per month instead of $1,237.18.
That works out to $178.56 per month – $2,142.72 per year – and $64,282 over the 30 year life of the loan!
If the house is $500,000 you’ll save $125,000 over 30 years. Now that’s a ton of money! That’s what waiting can cost you!
There are a lot of opportunities to buy a home in Roseville that you won’t find in other places. Loans like zero down payment – payment assistance with the payments deferred or forgiven over a few years. It doesn’t take much time and could save you a lot of money to make a phone call or two to find out if now is the right time for you to buy a home in Roseville.
- The “Cost of Waiting to Buy” refers to the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time.
- Freddie Mac predicts interest rates to rise to 5.1% by 2019.
- CoreLogic predicts home prices to appreciate by 4.3% over the next 12 months.
- If you are ready and willing to buy a home, now is a good time to find out if it’ll work for you.