The Cost of Waiting

Do your buyers know what the REAL costs are of waiting to make their home purchase for one more year?  Here are some figures that may surprise them. 

If interest rates increase 1% and home prices increase 10% over the next twelve month period, here is the impact on a monthly mortgage payment (principal and interest). 

Date        Price                 Interest Rate           P&I 

2013       $220,000*            4.5%                $1,114.71 

2014       $242,000              5.5%                $1,374.05 

                Difference in Payment             + $   259.34 

*Median Home Price in Snohomish County 

The increase in home values may sound GREAT to your sellers, but they might want to consider that both an increase in home values and interest rates means there are fewer buyers that will qualify to buy their home. 

 

Jim Fetzer
Old Republic Title & Escrow, Ltd.