Surely you have all heard the phrase "Time is money"...well it is true even when you are trying to pick the moment to purchase a home and it's all about interest rates and home values.
Currently we are in a buyer's market where there is an abundance of homes on the market and not enough buyer's to buy them...which has done a number on home values and pricing. Interest rates have also plummeted to all time lows making home mortgage payments more affordable.
As you know the pendulum swings both ways and the market will recover....house values will recover and interest rates will rise (no one knows exactly when this will take place) and we are beginning to see the start of that here in our San Antonio Real Estate market.
So what does this mean to you in dollars if you wait too long to purchase a home? Extra dollars spent each month on interest...how much? For example a note on a $100,000 home with a 3.5% down payment and 30 year fixed rate of 5.5% would have a P&I payment of $547.92....after waiting if the rates increase to 6% with everything else being the same the P&I payment will be $578.57....a difference of $30.65 per month (every month).
This does not take into account the probable rise in home values.
If you are a first time home buyer, you also need to consider the deadline of December 1st to close on your home purchase to be able to take advantage of the $8K tax credit(that you don't have to pay back).
Get with your Realtor to discuss what time frame would be in your best interest if you are considering buying a home but sitting on the fence. Please feel free to email me hollyg@kw.com for more information or go to my site for a free San Antonio Home search www.HollyGHomes.com
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