Buying a home is a big decision – it’ll likely be the largest investment you will ever make. There are days, weeks, months and sometimes years of planning and research that occur before the final choice is made. At Forbes Capretto Homes, we know you need to be fully prepared before buying a home, and we are always here to answer any of your homebuying questions. Did you know that in the current market, the longer you wait, the higher the cost of buying a new home in Western New York climbs?
As time passes, the cost for materials, labor and land increase meaning the average cost of a home is rising, too. As home prices and interest rates go up, so does your monthly mortgage payment. What seems like an incremental change in the short run could actually end up increasing the total amount you’ll pay over the life of your home significantly.
For example, let’s compare a home that is priced at $550,000 today. If you purchase this home with a 3.75% interest rate, obtain a 30-year fixed-rate loan, and put 20% down on your home, your monthly mortgage payment with principal and interest would be $2,038.
Now, consider this same home in one year’s time assuming there has been 4% market appreciation and a .5% interest rate increase. The home is now priced at $572,000, and your interest rate is 4.25%. Keeping all other factors equal, your new mortgage payment is $2,251 – that’s an increase of $213 per month! Over the life of a 30-year loan, you’ll wind up paying $98,827 more for the same home just by waiting to buy!
Buying a home is a big decision and one that should not be taken lightly. One of the questions you need to be asking when deciding to purchase a home is whether or not you can afford to wait! Don’t let waiting a year or more add up. Take advantage of the current low interest rates, lower building costs and great selection of homesites- start the process of buying a home today!
At Forbes Capretto Homes, we are always ready to answer your latest home buying questions. For more information or to learn more about our new homes in Western New York, visit www.ForbesCapretto.com or call 716-202-0839 today.