2 years ago, I closed on my $231,000 purchase of Owen Hollow with a 30 year VA 100% Mortgage loan at 3.25%.
My Monthly payment including Principal, Interest, Taxes, and Insurance is $1,304.90
If I were to buy Owen Hollow today, I would still have the VA 100% Mortgage loan, BUT the Mortgage interest rate would be @ 4.65% and the purchase price would likely be @ $265,000 (or more).
My Monthly payment including Principal, Interest, Taxes, and Insurance would be $1,564.36
$259.46/mth . . . $8.65 more EVERY DAY . . . and still losing ground with every day that passes.
There are 2 reasons your money is losing power and when they both are happening simultaneously, your money’s power declines exponentially.
Reason 1 – The Economy is chugging along and House values are RISING (Appreciating). For every day you wait, you get less house for your money.
Some experts are proclaiming that the housing market has fully recovered from the downturn 10 years ago . . . and it’s still climbing in most urban markets.
The Fed held interest rates “Artificially Low” for all these years in an effort to make it easier (less expensive) to buy. The goal was/is to bolster the economy, and it this was a good thing.
As the economy improves, the Fed is starting to take off those “Low Rate” training wheels . . . a little bit more with each of their meetings . . . and Mortgage Interest rates continue to rise.
So . . . This is for those folks who want to move, but not just yet!
This is your gentle nudge that waiting may be causing you financial harm.
Of course, you can protect yourself from this potential harm by contacting your REALTOR of choice NOW to get the process started.
(In Middle TN, a Pareto Realty Vital Few agent would be a stellar choice) if you don’t already have an agent.