The Cost of Waiting to Buy a Home

judithorear

housedollars_01

At the end of June, mortgage rates for a 30-year fixed-rate mortgage jumped to 4.5%, up from 3.9%on June 1 — and a notable jump from the historically low 3.35% monthly average rate toward the end of 2012. However, while higher rates do mean an increase in monthly mortgage payments, experts are urging potential home buyers not to resign themselves to renting for the next few years just yet — it’s still a good time to buy a home.

These moderate increases in payments may still be manageable, particularly if buyers look at less expensive properties, or negotiate a lower price.

For example, the difference in monthly payments for a $200,000 home at 3.9% and one at 4.5% is just $70.03. If budgeted correctly, this could be a manageable expense.

Rick Allen, chief operating officer of Mortgage Marvel, is one expert who says now is still the time to buy…

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