How Interest Rates Impact Family Wealth
With interest rates still in thelow 4%’s, many buyers may be on the fence as to whether to act now and purchase a new home, or wait until next year.
If you look at what the experts are predicting for 2015, it may make the decision for you.
If you look at what the experts are predicting for 2015, it may make the decision for you.
Even an increase of half a percentage point can put a dent in your family’s net worth.
Let’s look at it this way…
The monthly payment (principal & interest only) on a $250,000 home today, with the current 4.1% interest rate would be$1,208.
If we take that same home a year later, theHome Price Expectation Surveyprojects that prices will rise about 4% making that home cost $10,000 more at $260,000.
If we take Freddie Mac’s rate projection of 4.8%, the monthly mortgage payment climbs to$1,364.
Some buyers might not think that an extra $156 a month is that bad. But over the course of 30-year mortgage you have spent an additional$56,160by waiting a year.
Bottom Line
With interest rates still in thelow 4%’s, many buyers may be on the fence as to whether to act now and purchase a new home, or wait until next year.If you look at what the experts are predicting for 2015, it may make the decision for you.Even an increase of half a percentage point can put a dent in your family’s net worth.Let’s look at it this way…The monthly payment (principal & interest only) on a $250,000 home today, with the current 4.1% interest rate would be$1,208.
If we take that same home a year later, theHome Price Expectation Surveyprojects that prices will rise about 4% making that home cost $10,000 more at $260,000.
If we take Freddie Mac’s rate projection of 4.8%, the monthly mortgage payment climbs to $1,364.
Some buyers might not think that an extra $156 a month is that bad. But over the course of 30-year mortgage you have spent an additional$56,160by waiting a year.
If you look at what the experts are predicting for 2015, it may make the decision for you.
