If you read the first part of this blog series, you know mortgage rates are at a six-month low, renting is getting more expensive and most housing markets have recovered. Together, these factors put home buyers at an advantage and make it a great time to invest in a home.
Still on the fence? Today we discuss how waiting even another year to buy a home can end up costing you nearly $20,000 more.
Economic data analysts at real estate website, realtor.com, found that rising home prices coupled with mortgage rates that are set to increase could end up costing home buyers more. How much more? Postponing homeownership another year could cost you an estimated $18,672. Wait three years and you could end up paying $54,879 more over the life of your home loan!
The same article compares waiting to buy a home to waiting to start a 401 (k). You lose out on the compounding returns. Not only that, but nearly 90% of markets produce a financial benefit of at least $100,000 from owning over 30 years.
Also, keep in mind some of the non-financial benefits you reap when you invest in a home. A place to call your own, fixed costs (your mortgage payment won’t increase or vary like rent does), and the opportunity to build equity, just to name a few.
Purchasing a home is most likely the largest purchase you will make in your life. As with any big purchase, assess your personal situation to see if it makes sense for you to buy a home now.