We hear this all the time..."I'm going to wait for prices to hit bottom before I buy. I can save more money that way." So the question then becomes, are you paying cash?
"Oh no, I'm going to finance of course."
Imagine a few months ago you found "The One" the home that had it all and IF you took action back then you could have locked in at around 4% interest for 30 years, and let's say your payment would have been $1,000 a month (to keep the math simple).
Good news, you decided to wait to "save money" and the home dropped it's price $15,000. Now rates are up around 5% which is only a 25% increase in your cost to borrow. Your new monthly payment is $1,250 per month. So to save $15,000 it will now cost you an additional $90,000 over the next 30 years ($250 x 12 = $3,000 x 30 = $90,000). What happens when the rates go to 6% or 7% or higher? At what point will this home become unaffordable?
So I'm curious...how much longer do you want to wait for the bottom?
Click on the title above or the link below to review the entire Yahoo Finance article.
http://finance.yahoo.com/real-estate/article/112093/how-buying-a-home-is-likely-to-change?mod=realestate-buy
