Time vs Cost of Money?
If I wait for that $400,000 house to come down to $350,000, could I be risking higher payments? Why yes, you could…..and why?
- $400,000 mortgage @ 4.5% = $2026.24
- $350,000 mortgage @ 6.0% = $2098.43
Does this ever happen? It’s what we are watching buyers do right now!!
See the attached Spreadsheet and tell us your thoughts.
| Should we wait for prices to go down or rates to go up??? | ||||||
| Loan Amount | 4.50% | 5.00% | 5.50% | 6.00% | 6.50% | 7.00% |
| 100,000 | $506.69 | $536.82 | $567.79 | $599.55 | $632.07 | $665.30 |
| 150,000 | $760.03 | $805.23 | $851.68 | $899.33 | $948.10 | $997.95 |
| 200,000 | $1,013.37 | $1,073.64 | $1,135.58 | $1,199.10 | $1,264.14 | $1,330.60 |
| 250,000 | $1,266.71 | $1,342.05 | $1,419.47 | $1,498.88 | $1,580.17 | $1,663.26 |
| 300,000 | $1,520.06 | $1,610.46 | $1,703.37 | $1,798.65 | $1,896.20 | $1,995.91 |
| 350,000 | $1,773.40 | $1,878.88 | $1,987.26 | $2,098.43 | $2,212.24 | $2,328.56 |
| 400,000 | $2,026.74 | $2,147.29 | $2,271.16 | $2,398.20 | $2,528.27 | $2,661.21 |
| * Payments are all calculated on a 30 year fixed fully amortizing loan. | ||||||
Scott Dilbeck
Keller Williams Realty
First Atlanta
Direct: 404-861-6623
Fax: 770-783-2059
website: www.scottsrealty.com