Waiting for lower Mortgage Rates Could Cost More Than You Think

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Thinking about buying a home but waiting for mortgage rates to fall? Before you decide, consider how changing home prices could affect your monthly payment.

Waiting for Lower Mortgage Rates Could Cost More Than You Think

Why a lower interest rate doesn't always mean a better deal.

Imagine purchasing a $400,000 home today with 5% down and a 7% mortgage rate.

Now imagine waiting until rates decline to 6.5%, but the home's price increases to $420,000.

Here's the comparison:

Buy Now

• Purchase price: $400,000

• Loan amount: $380,000

• Interest rate: 7.00%

• Monthly principal & interest: $2,528

Wait to Buy

• Purchase price: $420,000

• Loan amount: $399,000

• Interest rate: 6.50%

• Monthly principal & interest: $2,522

Despite the lower interest rate, the monthly payment is only about $6 less, and the buyer finances an additional $19,000.

Of course, if home prices remain stable or decline, waiting could be beneficial.

The lesson? Don't evaluate your homebuying decision based on interest rates alone.

Click here to read my latest blog to see how home prices, competition, and financing options can affect your decision.

Rob Clark | Home Loan Consultant
Firestone Financial Group

209-227-7745 | 559-476-9279
rbrtclark53@gmail.com
www.RobertClarkLoans.com

NMLS #357788 | Company NMLS #301522
CA DRE #01148307 | Equal Housing Lender

Illustrative examples only. Assumes 30-year fixed-rate financing with 5% down. Payments exclude property taxes, homeowners insurance, mortgage insurance, HOA dues, and closing costs. Rates and future home prices are hypothetical, not predictions or loan offers. All financing is subject to qualification, approval, and program guidelines.