Welcome to the HomeInUtah.com Blog

2013-07-29 12:51:40
It Can't Hurt to Wait, Can It?

Wait.pngIt’s been said that more money has been lost due to indecision than was ever lost because of a bad decision. Regardless of whether you agree with the statement, delaying the decision to buy in today’s market is going to cost the buyer more. 

Home prices have gone up considerably in almost every market in the country in the past year and while inventories are beginning to grow, prices are expected to continue to rise. Mortgage rates jumped 1% from the beginning of May to now. They could easily reach 5% by the end of the year and continue to rise in 2014.

Many of the financial experts in the country believe that the economy will not be strong until rates are in the 7% area.

The two components that move the cost of housing are price and mortgage rates. Escalation of either one will have an affect but when both are going up simultaneously, it is dramatic. It can literally eliminate buyers who could have purchased earlier.

The following example shows what would happen to the payments on a $200,000 home if the price were to go up 3% at the same time that the mortgage rates went up 1%. Not only would the payments go up by $150.81 per month, the price of the home would be $6,000 more. Even though the down payment may not change much, the new owner would have to borrow more money. By not acting, it is costing them more in price and payment. The loss of the appreciation would have been equity had they purchased prior to the rise in price.

7-24-2013 8-44-42 AM.png

 

 

 

 

 

 

 

 

 

Check out the Cost of Waiting to Buy to see what the effect will be using your own projections.

 
Blog Archive
2018-08-14 12:15:23
Replace It Anyway

2018-08-13 12:21:25
What to Avoid Before Closing Your New Home

2018-08-06 16:46:30
Rising Rates Affect the Cost Too

2018-07-16 20:13:49
Owning Makes More Sense

2018-07-09 17:37:48
A Word Homeowners Need to Understand

2018-07-04 20:47:50
Don't Let a Killer In

2018-07-02 07:46:20
Unexpected Expenses

2018-06-18 19:19:14
Waiting Will Cost More

2018-06-11 12:30:00
The Tax Difference in Second Homes

2018-06-08 11:30:16
When Neighbors Don't Seem to Care

2018-05-31 10:01:54
Flag Protocol

2018-05-21 13:13:32
Second Guessing Price

2018-05-14 13:10:20
A Home for Tomorrow

2018-05-07 13:26:33
Assumptions May be an Alternative

2018-04-23 09:48:17
Costs More - Takes Longer

2018-04-12 21:51:58
Waiting Period After Distressed Sale

2018-04-10 18:24:22
Waiting Will Cost More

2018-03-19 12:33:09
Standard or Itemized

2018-03-06 13:27:26
Fair Skies on Horizon

2018-03-05 17:08:02
Your Refund Could be the Difference

2018-02-19 18:58:34
Historical Perspective

2018-02-12 10:13:30
The 'Right' Agent and the 'Right' Home

2018-02-11 13:10:55
Lower Your Expenses without PMI

2018-02-11 12:44:21
Convincing Advantages with Standard Deduction

2018-01-29 20:53:29
Lower Your Expenses without PMI

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.