Delaying a home purchase waiting for home values to decline could price you out of the market.
Say you are waiting for Tallahassee home values to decline 10%...
If that were to happen, and interest rates rose 1% to the 6% level, then you may not no longer be able to afford the same Tallahassee property. Interest rates are at all-time lows and have likely probability to increase. Not to mention the first time buyers tax credit.
Buying the same home | Waiting for price Decline | % change | Borrowing the same amount | Buying a better home
|
Borrow |
$100,000 |
$90,000 |
-10.0% |
$100,000 |
$100,000 |
|
Interest Rate |
5% |
6% |
20.0% |
7% |
8% |
|
Monthly Payment (30 year fixed rate loan) |
$536.82 |
$539.60 |
0.5% |
$665.30 |
$733.76 |
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
