Finances - The Cost of Waiting to Purchase a Home.

We already know from the Home Price Expectation Survey that prices are going to go up 3.1 percent between December 2012 and January 2013   Looking at a house that costs $210,000 now, that means by year end that same house will cost $216,510. That is the 3.1 percent price increase.

We also know that the Mortgage Bankers Association projects that interest rates are going to inch up to 4.4 percent by the end of the year.

As the chart below shows, what that means to a buyer purchasing a $210,000 home today, that the purchase price of the house will be $216,510 by the end of the year.  And if they buy now their monthly principal & interest charge will be $931.31; but if they wait until the end of the year to purchase a home they will be paying $1,084.20  for their housing.

Buying now verses later is going to save them $153 a month; or a savings of $1,800 a year.  Over a 30-year mortgage, they will save over $55,000.  Yes that is right, the difference between buying now and buying a year year from now is $55,000 to the buyer.

Buyers - this is the impact on your pocketbook, and your financial future.

Tomorrow I am going to talk about MOVE-UP Buyers.

All comments are appreciated.