Throughout the past year, real estate professionals and real estate gurus have put a lot of effort into stressing the difference between the 'cost' of a home, and the 'price' of a home. If you are considering purchasing a home or property, not only should you be aware of 'cost' vs 'price', but you should also be aware of mortgage interest rates.
We can determine exactly what it cost buyers who waited to buy a home as opposed to buyers who bought at the end of 2012.
Home buyers who waited saw a monthly mortgage payment increase of over $200. That's roughly 10 trips to the theater a month, two weeks worth of groceries, or even a monthly full coverage insurance payment.
As you can see below, that really adds up over the life of a 30 year mortgage.
Wow! Imagine how many times you could have filled up your gas tank with that extra $2,495 this year. Granted, we can't change the past, however this should clue you in as to what's to come for this upcoming year.
That's roughly an additional $200 a month, as opposed to if buyers purchased now. We're here to help you make an informed choice when it comes to a large purchase like a home.
Have you heard that many pundits believe there will be a dramatic drop in the real estate values because mortgages rates are starting to rise? That seems logical, however history portrays rising interest rates have not negatively impacted homes values in the past.
Several times over the last 30 years mortgage rates have increased, as shown below:
| Dates |
Mortgage Rates |
Home Values |
| May '83 - July '84 |
12.63 - 14.67 |
+6.6% |
| March - Oct '87 |
9.04 - 11.26 |
+5.2% |
| Oct '93 - Dec '94 |
6.83 - 9.2 |
+1.2% |
| April '99 - May 2000 |
6.92 - 8.52 |
+10.9% |
Maybe the impact of increasing rates won't be as impacting on future home prices as was predicted.
Find out what your home might sell or rent for NOW!
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