Are you debating purchasing a Morris or Sussex County home, but not yet sure if you'll buy NOW or WAIT until next year? Team Nest Builder's here to help you make the right decision with all the facts! Once you fathom just how much rising interest rates impact your mortgage payments, you'll understand why there's no time like the present to BUY!  Below you'll find a simple example of the impact interest rates and prices will have on your monthly mortgage payment:

Today

 

Next Year

4.20%

Interest Rate

Freddie Mac Projection 2018

4.80%

$250,000.

Home Price

CoreLogic Projection (+4.8%)

$262,000.

$1,222.54

Mortgage Payment

Per Month  - Principal & Interest

$1,374.62

COST OF WAITING TO BUY:  The additional funds required to buy a home if prices & interest rates were to increase over a period of time.  

Increase in Payments:

Monthly

$152.08

Annually

$1,824.96

Over 30 Years

$54,749.

Seeking a home that’s more expensive than the $250,000. example above?  For EVERY $250,000. you borrow, your monthly mortgage rate increases by $152.08 & the home price rises by $12,000.!

 

Here is an example:

 

Today

Next Year

Cost of Waiting

Interest Rate:

4.20%

4.80%

Home Price:

$750,000.

$786,000.

+$36,000.

Mortgage Payment

$3,667.63

$4,123.87

+$456.24

Mortgage payment is principal & interest only & accounts for a mortgage for the full home price.

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Sum It Up

Freddie Mac predicts interest rates will increase to 4.8% by this time next year, while home prices are predicted to appreciate by 4.8% according to CoreLogic.  To sum it all up, waiting until next year to buy that Morris or Sussex County home could cost you thousands of dollars a year for the life of your mortgage! So give Team Nest Builder a call today to start looking for your new nest NOW!

 

Sources:  CoreLogic, Freddie Mac, Bankrate