To buy now or Later

I find that some buyers are wondering if they should buy now or wait for prices to fall.  I often am asked if we have hit the bottom yet.  So there are 2 topics here to consider.   First of all we won't know if the market has hit the bottom until it is on the rise.   You may miss your perfect home if you wait to long.  Houses that are priced well and show well sell quickly even in todays market.   

In talking to a friend who is a mortgage broker, she had recently done some calculations on buying at todays prices and todays interest rates vs  higher interest rates and lower prices in a year.  Here is her comments:


If your client purchases today @ $325,000 with a 5 year @ 3.69% the monthly payments are $1,346.

If the same clients wait until next year and house prices do soften to $299,000. but interest rates rise to 4.49% (a reasonable assumption) the monthly payments are $1,377. This payment is higher even though the house cost is lower. (based on a 5% down payment & 35 year amortization)  Low rates make a big difference in monthly costs.


The message is always to buy now – not to rent!!


Compliments of Cathy Lewis   Jencor Mortgage.  Cathy can be reached @ 403-245-3636

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