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If you’re thinking about selling your Tucson home, you’re probably also thinking about the cost of waiting until next year to purchase a home.
You’re probably looking at home values in your area - especially the short-term ones. If you’re also buying, it’s important to factor in the overall cost of buying, too. There are two big factors to consider when evaluating that cost.
You need to consider the home’s appreciation rate over time, and the interest rate. The rate at which these two factors change is often called the cost of waiting.
According to a recent home pricing index, home values are expected to rise 5.5% nationally this year. A 30-year loan rate is expected to rise to 4.5% in that same timeframe. The impact of these projected changes could be huge.
For example, a $250,000 home can be bought today with an interest rate under 4%, which amounts to about a $1,100 monthly mortgage payment. If you were to wait a year and let these changes take hold, that same house will cost $263,000 with an interest rate of 4.5% and a monthly mortgage payment of about $1,350!
That $189 monthly difference may not seem like much, but it really adds up over time. Over the course of a 30-year loan, that’s more than $67,000.
When considering these factors, it makes your decision easier. For more tips or any questions you may have, please feel free to reach out today.
