My Real Estate Geek
RE/MAX Precision
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Cost of Waiting to Buy

Let’s say you’re 30 years old and your dream house costs $250,000 today. Right now mortgage interest rates are at or about 3.625%. Monthly mortgage payment (principal & interest only) would be $1,140.13.
But you’re busy, you like your apartment, and moving is such a hassle. You decide to wait until next year to buy.
Core Logic predicts that home prices will continue appreciate by 5.1% in the next 12 months; this means that same house you loved could cost, $262,750. Freddie Mac predicts that over this same period of time, interest rates should be back to 4.625%.
Your new payment per month is now $1,350.90The difference in payment is $210.77 PER MONTH!
That’s basically like taking $7 and tossing it out the window EVERY DAY! Or you could look at it this way: That’s your morning coffee everyday on the way to work (average $2) with $10 left for lunch! There goes Friday Sushi Night! ($50 x 4)  Need a new car?  You could get a brand new car for $210 a month. Let’s look at that number annually!
Over the course of your new mortgage at 4.625%, your annual additional cost would be $2,529.24! Had your eye on a vacation in the Caribbean? How about a 2­ week trip through Europe? Or maybe your new house could really use a deck for entertaining. We could come up with 100’s of ways to spend $2,529.24, and we’re sure you could too!
Here’s where it gets really interesting. Over the course of the 30 year loan, you are now at age 61, hopefully ready to retire soon. You would have spent an additional $75,877, all because when you were 30 you thought moving in 2017 was such a hassle or  you loved your apartment too much to leave yet.  Or maybe there wasn’t an agent and a loan officer out there who educated you on the true cost of waiting one year. If your agent and loan officer showed you how much you could save $78,000—I bet you would at least listen to what they had to say. Right?