Cost of Waiting to Buy a Home

Home affordability declines quickly when rates and prices rise together.

Buyers who are waiting to purchase may not qualify for the same price home today in 6 months!

In a rising market, you usually can't out-save appreciation.

When prices are rising, it can be difficult for your savings to keep up.

Example, if a $300,000 home appreciates by 5% in one year, that's $15,000 or $1,250 per month. Can you add that amount to what you're already saving each month?

Given the recent environment, a 2% increase in rates would not be far from Federal Reserve Board rate projections. The 50-year average for a 30-year, fixed-rate conventional loan is approximately 8.375%. That's almost 4% higher than rates at the time of this writing and would equate to a pay increase of more than $663 per month in the example.

Qualified borrowers have the ability to lock in today's prices and rates. Buyers who have not yet accumulated a large down payment may find that using a small down payment and paying mortgage insurance is wiser than missing out on low prices and historically low rates.

We're here to help when you’re ready to learn more.

*These hypothetical examples are illustrations for educational purposes only and are not an offer to lend nor a Good Faith Estimate. Examples are for a $250,000 home that rose to $275,000 with a rate increase from 4.50%/4.762% APR to 6.50%/6.95% APR on a zero point 30-year, fixed-rate loan with a 20% down payment, $4,000 in taxes and annual insurance of $580 for the "today" example and $638 for the "tomorrow" example. APRs are calculated using closing costs equal to 3% of the loan amount. Actual costs can be less, and actual rates are subject to change at any time. Qualification for any loan is dependent on individual circumstances and subject but not limited to employment/income, credit history, and acceptable liquid assets to close.