[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f26y6ue02h2bhc":3,"$ffeh0925h8cuz":49,"$fbwk2pqjjqsc7":53},{"item":4,"previous":37,"next":43},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":13,"bodyImage":9,"isInfographic":14,"categories":15,"isVideo":14,"videoThumbnail":9,"videoSource":9,"publishedAt":36,"updatedAt":36},1878,"why-waiting-to-buy-a-home-could-cost-you-a-small-fortune","Why Waiting to Buy a Home Could Cost You a Small Fortune","Many people are sitting on the fence trying to decide if now’s the time to \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2021\u002F04\u002F28\u002Fpatience-is-the-key-to-buying-a-home-this-year\u002F\">buy a home\u003C\u002Fa>. Some are renters who have a strong desire to become homeowners but are unsure if buying right now makes sense. Others may be homeowners who are realizing that their current home no longer fits their changing needs.","","blog","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F05\u002F05131302\u002F20210506-KCM-Share.jpg","Many people are sitting on the fence trying to decide if now’s the time to \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2021\u002F04\u002F28\u002Fpatience-is-the-key-to-buying-a-home-this-year\u002F\">buy a home\u003C\u002Fa>. Some are renters who have a strong desire to become homeowners but are unsure if buying right now makes sense. Others may be homeowners who are realizing that their current home no longer fits their changing needs.\u003C!--more-->\r\n\r\nTo determine if they should buy now or wait another year, they both need to ask two simple questions:\r\n\u003Col>\r\n \t\u003Cli>Do I think home values will be higher a year from now?\u003C\u002Fli>\r\n \t\u003Cli>Do I think mortgage rates will be higher a year from now?\u003C\u002Fli>\r\n\u003C\u002Fol>\r\nLet’s shed some light on the answers to these questions.\r\n\u003Ch4>\u003Cstrong>Where will home prices be a year from now?\u003C\u002Fstrong>\u003C\u002Fh4>\r\nIf you average the most recent \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2021\u002F04\u002F29\u002Fis-home-price-appreciation-accelerating-again\u002F\">projections\u003C\u002Fa> from the major industry forecasters, the expectation is home prices will increase by 7.7%. Let’s take a house that’s valued today at $325,000 as an example.\r\n\r\nIf the buyer makes a 10% down payment ($32,500), they’ll end up borrowing $292,500 for their mortgage. Applying the projected rate of home price appreciation, that same house will cost $350,025 next year. With a 10% down payment ($35,003), they’d then have to borrow $315,022.\r\n\r\nTherefore, as a result of rising home prices alone, a prospective buyer will have to put down an additional $2,503 and borrow an additional $22,523 just for waiting a year to make their move.\r\n\u003Ch4>\u003Cstrong>Where will mortgage rates be a year from now?\u003C\u002Fstrong>\u003C\u002Fh4>\r\nToday, \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2021\u002F04\u002F21\u002Fplanning-to-move-you-can-still-secure-a-low-mortgage-rate-on-your-next-home\u002F\">mortgage rates\u003C\u002Fa> are hovering around 3%. However, most experts believe they’ll \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2021\u002F05\u002F05\u002Fare-interest-rates-expected-to-rise-over-the-next-year\u002F\">rise\u003C\u002Fa> as the economy continues to recover. Any increase in the mortgage rate will also increase a purchaser’s cost. Here are the forecasts for the first quarter of 2022 from four major entities:\r\n\u003Cul>\r\n \t\u003Cli>\u003Ca href=\"http:\u002F\u002Fwww.freddiemac.com\u002Fresearch\u002Fforecast\u002F20210414_quarterly_economic_forecast.page?\">Freddie Mac\u003C\u002Fa> – 3.5%\u003C\u002Fli>\r\n \t\u003Cli>\u003Ca href=\"https:\u002F\u002Fwww.fanniemae.com\u002Fresearch-and-insights\u002Fforecast\">Fannie Mae\u003C\u002Fa> – 3.5%\u003C\u002Fli>\r\n \t\u003Cli>\u003Ca href=\"https:\u002F\u002Fcdn.nar.realtor\u002Fsites\u002Fdefault\u002Ffiles\u002Fdocuments\u002Fforecast-Q2-2021-us-economic-outlook-04-29-2021.pdf\">National Association of Realtors\u003C\u002Fa> – 3.5%\u003C\u002Fli>\r\n \t\u003Cli>\u003Ca href=\"https:\u002F\u002Fwww.mba.org\u002Fnews-research-and-resources\u002Fresearch-and-economics\u002Fforecasts-and-commentary\">Mortgage Bankers Association\u003C\u002Fa> – 3.9%\u003C\u002Fli>\r\n\u003C\u002Ful>\r\nThe projections average out to 3.6% among these four forecasts, a jump up from where they are today.\r\n\u003Ch4>\u003Cstrong>What does it mean to you if home values and mortgage rates increase?\u003C\u002Fstrong>\u003C\u002Fh4>\r\nA buyer will pay a lot more in mortgage payments each month if both of these variables increase. Assuming a buyer purchases a $325,000 home this year with a 30-year fixed-rate loan at 3% after making a 10% down payment, their monthly principal and interest payment would be $1,233.\r\n\r\nThat same home one year from now could be $350,025, and the mortgage rate could be 3.6% (based on the industry forecasts mentioned above). That monthly principal and interest payment, after putting down 10%, totals $1,432.\r\n\r\nThe difference in the monthly mortgage payment would be $199. \u003Cstrong>\u003Cem>That’s $2,388 more per year and $71,640 over the life of the loan.\u003C\u002Fem> \u003C\u002Fstrong>\r\n\r\nAdd to that the approximately $25,000 a house with a similar value would build in home \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2021\u002F04\u002F20\u002F82338-great-reasons-to-buy-a-home-today\u002F\">equity\u003C\u002Fa> this year as a result of home price appreciation, and the total net worth increase a purchaser could gain by buying this year is nearly $100,000. That’s a small fortune.\r\n\u003Ch3>\u003Cstrong>Bottom Line\u003C\u002Fstrong>\u003C\u002Fh3>\r\nWhen asking \u003Cem>if \u003C\u002Fem>they should buy a home, many potential buyers think of the \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2021\u002F05\u002F03\u002Famericans-find-the-nonfinancial-benefits-of-homeownership-most-valuable\u002F\">nonfinancial benefits\u003C\u002Fa> of owning a home. When asking \u003Cem>when\u003C\u002Fem> to buy, the financial benefits make it clear that doing so now is much more advantageous than waiting until next year.","\r\nWhen asking \u003Cem>if \u003C\u002Fem>they should buy a home, many potential buyers think of the \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2021\u002F05\u002F03\u002Famericans-find-the-nonfinancial-benefits-of-homeownership-most-valuable\u002F\">nonfinancial benefits\u003C\u002Fa> of owning a home. When asking \u003Cem>when\u003C\u002Fem> to buy, the financial benefits make it clear that doing so now is much more advantageous than waiting until next year.",false,[16,20,24,28,32],{"id":17,"name":18,"slug":19},5,"For Buyers","buyers",{"id":21,"name":22,"slug":23},9,"Home Prices","home-prices",{"id":25,"name":26,"slug":27},11,"First-Time Buyers","first-time-buyers",{"id":29,"name":30,"slug":31},35,"Mortgage Rates","mortgage-rates",{"id":33,"name":34,"slug":35},38,"Move-Up","move-up","2021-05-06T10:00:35Z",{"id":38,"slug":39,"title":40,"featuredImage":41,"publishedAt":42,"contentType":10,"isVideo":14},1877,"are-interest-rates-expected-to-rise-over-the-next-year","Are Interest Rates Expected to Rise Over the Next Year?","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F05\u002F04155408\u002F20210505-KCM-Share.jpg","2021-05-05T10:00:15Z",{"id":44,"slug":45,"title":46,"featuredImage":47,"publishedAt":48,"contentType":10,"isVideo":14},1879,"the-power-of-mortgage-pre-approval-infographic","The Power of Mortgage Pre-Approval [INFOGRAPHIC]","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F05\u002F06093846\u002F20210507-KCM-Share.png","2021-05-07T10:00:24Z",{"cover":50,"open":51,"shareSpread":52},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Magazine-original.png",[54,58,59,63,67,71,72,73,77,78,79,83,87,91,95,99,103,107,111,115,119,123,127,131,135,139,143,147,151,155],{"id":55,"name":56,"slug":57},1,"Uncategorized","uncategorized",{"id":17,"name":18,"slug":19},{"id":60,"name":61,"slug":62},6,"For Sellers","sellers",{"id":64,"name":65,"slug":66},7,"Foreclosures","foreclosures",{"id":68,"name":69,"slug":70},8,"Infographics","infographics",{"id":21,"name":22,"slug":23},{"id":25,"name":26,"slug":27},{"id":74,"name":75,"slug":76},34,"Senior Market","senior-market",{"id":29,"name":30,"slug":31},{"id":33,"name":34,"slug":35},{"id":80,"name":81,"slug":82},41,"For Sale by Owner","for-sale-by-owner",{"id":84,"name":85,"slug":86},42,"Featured","featured",{"id":88,"name":89,"slug":90},45,"New Construction","new-construction",{"id":92,"name":93,"slug":94},52,"Luxury \u002F Vacation","luxury--vacation",{"id":96,"name":97,"slug":98},53,"Rent vs. Buy","rent-vs-buy",{"id":100,"name":101,"slug":102},80,"Time-sensitive","time-sensitive",{"id":104,"name":105,"slug":106},81,"Outdated","outdated",{"id":108,"name":109,"slug":110},147,"Internal","internal",{"id":112,"name":113,"slug":114},148,"Do Not Autopost","do-not-autopost",{"id":116,"name":117,"slug":118},320,"Inventory","inventory",{"id":120,"name":121,"slug":122},321,"Agent Value","agent-value",{"id":124,"name":125,"slug":126},322,"Affordability","affordability",{"id":128,"name":129,"slug":130},323,"Buying Tips","buying-tips",{"id":132,"name":133,"slug":134},324,"Downsize","downsize",{"id":136,"name":137,"slug":138},325,"Economy","economy",{"id":140,"name":141,"slug":142},326,"Equity","equity",{"id":144,"name":145,"slug":146},327,"Forecasts","forecasts",{"id":148,"name":149,"slug":150},328,"Selling Tips","selling-tips",{"id":152,"name":153,"slug":154},339,"Expired\u002FWithdrawn\u002FCanceled","expiredwithdrawncanceled",{"id":156,"name":157,"slug":158},340,"Price It Right\u002FOverpricing","price-it-rightoverpricing"]