Buying a Home? Consider COST not just PRICE

When buying a home, there are a lot of factors to consider, one that is important to remember is the difference between cost and price.

As a buyer, you must be concerned not about price but instead about the ‘long term cost’ of the home.

Last month, the Mortgage Bankers Association(MBA), the National Association of Realtors, Fannie Mae and Freddie Mac all projected that mortgage interest rates will increase by about one full percentage over the next twelve months. We also know that many experts are calling for home prices to also increase over the next year.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact an interest rate increase would have on the mortgage payment of a home selling for approximately $250,000 even if home prices don’t increase:

Buying A Home: The cost of waiting

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