With Interest Rates and Home Prices on the rise, do you know the true Cost of Waiting?
Today we are excited to have Morgan Tranquist as our guest blogger. Morgan is the Marketing & Graphics Director for The KCM Crew and provides insight into what the Millennial Generation needs to hear from their agents. – The KCM Crew
At Keeping Current Matters, we have often broken down the opportunity that exists now for Millennials who are willing and able to purchase a home NOW… Here are a couple other ways to look at the cost of waiting.
Let’s say you’re 30 and your dream house costs $250,000 today, at 4.12% your monthly Mortgage Payment with Interest would be $1,210.90.
But you’re busy, you like your apartment, moving is such a hassle…You decide to wait till the end of next year to buy and all of a sudden, you’re 31, that same house is $270,000, at 5.3%. Your new payment per month is $1,499.32.
The difference in payment is $288.42 PER MONTH!
That’s basically like taking a $10 bill and tossing it out the window EVERY DAY!
Or you could look at it this way:
- That’s your morning coffee everyday on the way to work (average $2) with $11 left for lunch!
- There goes Friday Sushi Night! ($72 x 4)
- Stressed Out? How about 3 deep tissue massages with tip!
- Need a new car? You could get a brand new $20,000 car for $288.00 per month.
Let’s look at that number annually! Over the course of your new mortgage at 5.3%, your annual additional cost would be $3,461.04!
Had your eye on a vacation in the Caribbean? How about a 2-week trip through Europe? Or maybe your new house could really use a deck for entertaining. We could come up with 100’s of ways to spend $3,461, and we’re sure you could too!
Over the course of your 30 year loan, now at age 61, hopefully you are ready to retire soon, you would have spent an additional $103,831, all because when you were 30 you thought moving in 2014 was such a hassle or loved your apartment too much to leave yet.
Or maybe there wasn’t an agent out there who educated you on the true cost of waiting a year. Maybe they thought you wouldn’t be ready, but if they showed you that you could save $103,831, you’d at least listen to what they had to say.
They say hindsight is 20/20, we’d like to think that 30 years from now when you are 60, looking back, you would say to buy now…