The Cost of Waiting to Buy a Home in Alaska— Rising Interest Rates!
It is not uncommon for Alaskan homebuyers to sit on the fence, wondering if there will be a better time to purchase a home down the road. Will you be able to get a better deal on a property in a few months? Will the real estate market slow down? These are all valid questions, but it's also important to consider the flip side and what it could cost you if you choose to wait to buy a home.
In today's market, interest rates continue to rise and waiting as little as a few months could cost you more than you think in your monthly mortgage payment. According to real estate news outlet Keeping Current Matters, the cost of waiting to buy is defined as the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time.
For instance, in today's real estate market with an interest rate of 4.4 percent on a $250,000 loan, your monthly mortgage payment would come in roughly around $1,250. By waiting until the second quarter of the year to buy a home, your interest rate could increase to 4.5 percent, bringing your monthly payment to $1,266, and so on:
Q3: Interest Rate— 4.6 percent, Mortgage Payment— $1,280.
Q4: Interest Rate— 4.9 percent, Mortgage Payment— $1,326.
2019: Interest Rate— 5.1 percent, Mortgage Payment— $1,357.
Interest rates are projected to continue their incline through 2019, ultimately meaning the longer you wait to buy a home, the more you will end up paying in the long run. If you're still on the fence about buying a home in Alaska, contact Madden Real Estate today!
We are here to help you find your Alaskan dream home and lock in an interest rate while they are still historically low!