As peak buying season in Central Florida ramps up, many potential buyers are wondering if they should buy now, or wait another year to purchase a home.
If you have the ability to purchase right now, there could be a cost to waiting. Things you need to consider when making this decision are Interest Rates, Home Prices, and Mortgage Payment Amount.
According to Freddie Mac (the Federal Home Loan Mortgage Corporation), interest rates are due to rise to 4.5% by October 2020. Right now they’re holding around 4.3% – but what kind of difference will that really make? Well, for a mortgage on a $250,000 home, that extra .2% in one year will add about $90 to your monthly payment. Doesn’t seem like much? The infographic below spells out exactly what that means in your every day life, and how much more you will have spent when you make your last payment, 30 years from now.
But it’s not just the interest rate or mortgage amount you need to consider. Think about home prices. A lot of people who were adults during the most recent recession remember that huge bubble burst in home prices, and worry that if they buy now, they’ll be paying too much and be underwater if prices fall again. However, major market adjustments like that are rare. CoreLogic is predicting home prices to actually appreciate by 4.8% over the next 12 months. So if you wait a year, that $250,000 home will cost more like $262,000. That’s $12,000 you could have in equity in your home if you bought now.
If you think you’re ready to buy, start the pre-qualification process here by talking to an expert.
Once you know what kind of buying power you have, let us set up a custom search of Central Florida homes for you.
Are you looking to upgrade or move? Find out if it’s the right time for you to sell, and see what your home is worth with our Free Home Valuation Tool!