Don’t Lose $70,000 By Waiting to Sell or Buy
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Now, let’s assume that interest rates rise as the economy improves, as they often do. As shown below, if rates increase modestly by 1.75% on that same mortgage to bring the rate up to 5.5%, the monthly payment jumps from $834 per month to $1,022 per month. That’s a $188 increase, which is roughly the equivalent of a car payment. Annually, that’s $2,256—the cost of a family vacation. Now we’re talking about real money; money that impacts your lifestyle.
In terms of the big picture, that $120,000 at 3.75% interest jumps up to $188,000. This is nearly a $70,000 increase just for waiting to list your home. It’s also important to note that this figure does not factor in the price increase for a property.
If you can correctly navigate today’s market, it’s possible to end up in a win-win situation in which you’ll get a maximum price as a seller, then take advantage of low interest rates as a buyer.
If you’re interested in finding out what your home will sell for in today’s market, give us a call or send us an email and we’d be happy to discuss it with you.