Real Estate March 1, 2014

Moving-Up? Do it NOW not Later

A recent study revealed that the number of existing home owners planning to buy a home this year is about to increase dramatically. Some are moving up, some are downsizing and others are making a lateral move. Another study shows that over 75% of these buyers will, in fact, be in that first category: a move-up buyer. We want to address this group of buyers in today’s blog post.

There is no way for us to predict the future but we can look at what happened over the last year. Let’s look at buyers that considered moving up last year but decided to wait instead.

Assume they had a home worth $300,000 and were looking at a home for $400,000 (putting 10% down they would get a mortgage of $360,000). By waiting, their house appreciated by 13.8% over the last year (national average based on the Case Shiller Pricing Index). Their home would now be worth $341,400. But, the $400,000 home would now be worth $455,200 (requiring a mortgage of $409,680).

Here is a table showing what additional monthly cost would be incurred by waiting. If you have questions about current mortgage rates, be sure to contact one of our preferred lenders below.

-Steve and Sandra

Steve Hill and Sandra Brenner
Windermere Real Estate/FN
Seattle-Northwest
122502 Greenwood Ave N, Suite A
Seattle WA 98133
call/text: 206-769-9577
email: stevehill@windermere.com

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call/text: 425-260-6834

 

 

Mortgage, Rates, Payment, Interest May 23, 2013

Total Increase a Buyer May Pay if They Wait

Earlier in the week, we explained that experts have projected that U.S. home prices will appreciate by approximately 5% in 2013. We also revealed the Mortgage Bankers AssociationFannie Mae and the National Association of Realtors have all projected that the 30-year mortgage rate will be at least 4% by the end of 2013. If we assume that prices and interest rates will rise as projected, here is the monthly difference a buyer may pay if they wait a year.

Steve Hill and Sandra Brenner
Windermere Real Estate Seattle Northwest
206-769-9577