How Much More Will You Pay if You Wait to Buy a Home?
“I will just wait until home Price$ go down…”
Consider the cost of waiting and buying at a higher interest rate. Let’s say you get a loan at a rate of 3.65% versus a rate of 5%. With a loan of 3.65% your monthly interest cost will be roughly $1400.
If you were to wait to buy that same home at an interest rate of 5% it would cost roughly $1900 per month in interest. The real saving in interest is approximately $500 per month were you to buy at the lower interest rate.
Here is a visual comparison on a monthly basis:
Over the life of the loan there is a significant cost savings between the two differing percentages.