Bird Dog Group | brokered by: Real Broker’s Post

Transcript

In a lot of first time home buyers here in Greenville putting off that first home purchase because they're scared of rates in the aids but they're not doing the math on what it might be costing them. Let's break it down now quick disclaimer here if you're not ready willing and able to buy a home, who cares what the interest rate is? You're just not ready save your money. You'll get there someday. But if you are ready and you're just hesitant to pull trigger because of the high rates, you're waiting for them to come down. This is what I want to run some math on. 300K house 5% down, 30 year interest rate. Let's run some numbers. So you bought an 8% interest rate, just principal and interest after one year of homeownership, November of this year to November of next year, that's $25,100 of rounded up slightly here is what you've paid in total. Now if you had gotten the same deal that as 6% interest rate, you'd have only paid 20,500. So it's $4600 difference. That's a significant amount of money and that's the impact of higher rates. But remember this with an 8% rate even still you've still paid off 2400. Dollars toward the balance of the loan. You get that back in the form of equity in the house. Not to mention if the home appreciates it. Let's just say 2% below the rate of inflation below the long term historical average. That's six grand. So that's $8400 in total equity. This is why, once again, ownership in the long run makes people a lot wealthier than people who rent you. Accumulate that all important equity. Make sure you factor this into your decision. Hit the follow button for more tips.