Jeff Schneider

DRE: SA646184000


(602) 881-1452
(602) 230-7600 (Office)

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The cost of waiting

Posted On: April 24th, 2014 3:05PM

Let's dissect the opportunity that currently exists for the Millennial generation who are willing and able to purchase a home right now. Here are a couple other ways to look at the cost of waiting. 

Let’s say you're 30 and your dream house costs $250,000 today, at 4.41% your monthly Mortgage Payment with Interest would be $1,253.38.

But you’re procrastinating, busy, you like your rental, moving is such a drag...You decide to wait till the end of next year to buy and all of a sudden, you’re 31, that same house is now $270,000 and the interest rates have increased to 5.7%. Your new monthly payment is now $1,567.08.

 

The difference in payment is a staggering $313.70 per month!!!


Do the math, that's over $10/day you're throwing away. your annual additional annual cost would be $3,764.40 at 5.7%.

Or a different way to look at it...
•There goes your morning coffee everyday on the way to work (Average $2) with $12 left over.
•There goes Friday date Night! ($80 x 4)
•Need a new car? You could get a 20K car for $300.00 per month.

Or what about that family vacation? Maybe your new house could really use a deck for entertaining or a kitchen/bathroom remodel? I could come up with a lot of ways to spend the extra $3,764.40, and I'm sure you could too!

 Maybe you could use the $3764 to save for retirement or pay off the mortgage early? Over the course of your 30 year loan, now at age 61, hopefully you are ready to retire soon, you would have spent an additional $112,932, because when you were 30 you hesitated for one reason or another and missed out on low interest rates and lower pricing.

Or maybe there wasn’t an agent out there who educated you on the true cost of waiting.

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