With high interest rates these days, most homebuyers think they need to wait to purchase until the rates go back down. Well, do you know that your overall monthly mortgage payment could be around the same amount of money today, as it would have been 1 year ago when rates were much lower??? Say what?!?
But interest rates are the highest they’ve been in years, you say. That’s true, BUT home prices have gone down considerably. In many areas, prices have decreased 100K. Let’s do the math, so you can see that your monthly payments would be about the same!
A home that cost 600K one year ago is probably around 500K today. Last year, the rates were around 4.75%. Now, they’re around 6.5%. Assuming for both homes the following: tax rate of 2.1%, insurance at $2500/year, 10% down, no HOA fees, and 30 year fixed term, this is your monthly payment:
Last year, the 600K home at 4.75% would be approximately $4,075.
Today, this same home would be around 500K. With a 6.5% rate, the monthly payments would be around $3,927.
In this scenario, you’re actually paying LESS monthly than a year ago when rates were LOWER!!! WOW!
So yes, mortgage rates have increased but home prices have also decreased, essentially creating close to the same monthly payment. So take advantage of this market, where many sellers are now willing to negotiate!
NOW is the Time to Buy! Contact us today.