Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase.
This morning I sat down with Justin Froiland from Fairway Mortgage. Listen as he explains why waiting to buy a home might cost you more money in the long run. You can reach Justin at 605.695.1429 or firstname.lastname@example.org. His office is located at 412 5th St., Brookings SD 57006 or on the web at www.BrookingsMortgage.com
The Cost of Waiting to Buy a Home
- Hey good morning everybody. It's Shane here with Brookings Home Team powered by Century 21. It is Monday and behind the scenes, we are getting ready for this video here today. So thanks, Justin, for doing this with us today. Again, it is Monday morning mortgage tip. It is 8:15 and I've got Justin here from Fairway Mortgage and he's gonna talk a little bit about a little tip here that has been kinda coming up with some questions between both of us here lately and thought it was a good thing to talk about today. So take it over, Justin.
- Thanks, Shane, yes. So today I wanted to spend a little bit of time talking about the cost of waiting. I've had a number of borrowers lately ask, "Should I look at buying a house right now or should I wait a year or two, save up a little bit more money, and then look at buying a house?" And there's really not one blanket answer for everybody. Each person's situation's a little bit different. But I wanted to go over a couple of the different aspects of the cost of waiting. One of the big ones being, with the market that we're in right now, the interest rates are tending to go up a little bit. And in my opinion, for the foreseeable future, they're gonna continue to do that. And so that's one aspect to look at. The higher the rates go up, the lower your purchasing price power means, which essentially means the smaller of a house that you can purchase. And so that's one aspect to look at. Another aspect to look at is the property appreciation rates. In Brookings, we're very fortunate to have a very strong housing market. And Shane can attest to this a little bit, but as far as the prices of the houses going up from year to year. Right now, you can't get the same size and everything of a house that you could get last year or two years ago. It's gonna be a little bit more expensive. So that's another aspect to look at it. Another big one is, for most of you that are out there that don't own your house currently, you're paying rent right now. And so if you wait another year or two paying, you know, 800, $1000 a month in rent, you're essentially throwing that money away where you could be putting it towards your mortgage and helping build the equity in your property. And so there's a couple different aspects when it comes to looking at if you should buy now or if you should wait to buy. I'm fortunate enough to have some access to some software here at Fairway that we can run some analyses that are specific to your situation, that take into consideration what you pay a month in rent and what you have in savings and a number of different aspects. It can also take into consideration the rising interest rates and give you an idea of what the total cost analysis is compared to buying a house now versus waiting a year or two to buy a house at that point. And most of the time, again, there's no general blanket for everybody, but most of the time, at least with the market that we're in right now, it makes sense to purchase sooner rather than later to get a little bit more bang for your buck. So just wanted to touch base a little bit on that. I've been asked a lot of questions regarding that lately. So if anyone wants to run one of those scenarios, the nice thing is that we don't even have to have an application filled out to run one of those cost depleting analysis. We can just do that sitting down 15 minutes together and give you an idea of kind of where you sit with everything.
- So here's what we're gonna do. If you are currently renting right now, shoot us a message what you're paying for rent right now and we'll shoot back what price of a home you can afford at that. Does that sound like--
- Yeah, yeah, definitely.
- A good thing, so.
- Definitely, we can certainly do that and kind of give you an idea of what sort of caliber of a house that rent payment would entail. And then if you want to take it a step further, we can always sit down and put together one of those cost analysis and kind of go from there.
- No, that would get the ball rolling. All you have to do is just shoot us what you're paying for rent every month and you know what? We can shoot back and say this is the price range of a home that you're gonna be in. You could be... Even better, if you're paying that much in rent already and you can afford that, you might be able to pay a little bit more and get a bigger home, too. So just shoot us back a message and we'd be happy to shoot back a number to you with that as well. So, all right, perfect. Great information here this morning, Justin. Thank you for that. Thank you guys for watching again. We'll be back next Monday for our Monday morning mortgage tip. Feel free to share this. Tag anybody that you think would benefit from this video and reach out to us. As usual, I'll have Justin's information on the top, on the bottom, on the sides, wherever your device allows you to see that. Feel free to reach out to either one of us and if you've got a question for us in one of our upcoming episodes, let us know and we'd be happy to answer it right here next time. So, all right, 'til next week. Thanks guys for watching. Have a great week.
- Thank you!
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