Why Buying a House Now, May Make More Sense

Why Buying a House Now, May Make More Sense

When should a buy a house?

You have nine months left on your lease, and a year on your car loan so you’ve decided to wait six months to start looking for a home until Spring of next year. Sound familiar?

You have about 5% towards your down payment, but you want to have at least 10% saved before you buy so you are aggressively saving until you hit 10%. Is this you?

If either of these sounds like you, listen up. Rates are going up, they have already gone up a good percent in the last two months. I expect they will continue to rise as the Federal Reserve Rate goes up. Rates going up means money out of your pocket. Kiss saving two month’s rent to break your lease or your 5% extra down payment good bye.

An example, you were looking at buying a $200,000 house (assuming no down payment for simplicity), and rates went from 3% to 4% that is over $110 a month different on your payment, and over the life of a 30 year loan, almost $40,000 more you would pay in total interest. Are you expecting to save $40,000 by waiting?

This may seem extreme, and you may say, “but Shanna, I’m not planning on staying my first house for thirty years.” Realize that a lot of people’s lives don’t go as planned and even 10 years of payment is over $13,000 difference. Life happens and sometimes you just ride the wave instead of being in control.

And I’ll ask again, are you going to save $13,000 in the next six to twelve months?

If the answer is no, you should consider buying now. Rising rates almost always trump people saving for a down payment, or even having to break a lease a cough up a little bit of money to make the lease go away. If you have any specific questions regarding your own scenario, send me a message or give me a call.

For some FAQ about the process, download by FREE ebook, “Buying Guide, Your First Home.”Shanna Lafontaine is a Realtor with RE/MAX Affiliates who works Metro Columbus, Dublin, Hilliard, Powell, Worthington, Westerville, Delaware and surrounding Central Ohio areas helping both Buyers and Sellers.

Leave a Reply

Your email address will not be published. Required fields are marked *

Shanna Lafontaine, LLC© 
RE/MAX Affiliates Inc. 7239 Sawmill Rd. Ste 210, Dublin, OH 43016

The information contained in this site is solely the individual opinions of its posters. Nothing in this site should be considered legal advice or implying any type of fiduciary duty between its creators, users and posters. All information published through this site is deemed reliable but it is not guaranteed.