Welcome to the HomeInUtah.com Blog

2015-04-15 19:21:44
Are You Ready?

are you ready2.pngFor whatever reason you’ve delayed buying a home, it may be time to reconsider that decision based on today’s conditions and what is expected to happen in the future.

Rents are continuing to increase to the point that in most markets, it is significantly less expensive to own than to rent.  Even after you factor repairs into the equation, the low interest rates, principal accumulation due to amortization, appreciation and tax savings lower the monthly cost of housing.

Low inventories coupled with strong demand cause a rising effect on prices.  Another reason for higher values is that builders, especially in certain price ranges, have not ramped up new home starts to keep up with the demand.

Recently, the Federal Reserve announced that they intend to start raising rates. Most experts agree that higher interest rates are a foregone conclusion; it is just a matter of when it will happen.

A $300,000 home today could cost considerably more one year from now.  With a 20% down payment, if prices go up by 3% and the interest rates increase by .5%, the principal and interest payment at 3.625% would be $1,094.52 for 30 years compared to $1,198.05 at 4.125%.

The question is not necessarily “can you afford the additional $103.53 more per month that you’d have to pay for the home during the 30 year term?”  More importantly, “How would you feel about having to pay more because you weren’t ready to make a decision and what would you have spent it on if you didn’t have to pay a higher payment?”

 

 
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.