Buying a Home? Consider COST not just PRICE - by The KCM Crew
We have often talked about the difference between COST and PRICE. As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As a buyer, you must be concerned not about price but instead about the ‘long term cost’ of the home. Let us explain.
Last month, the Mortgage Bankers Association(MBA), the National Association of Realtors, Fannie Mae and Freddie Mac all projected that mortgage interest rates will increase by about one full percentage over the next twelve months. We also know that many experts are calling for home prices to also increase over the next year.
What Does This Mean to a Buyer?
Here is a simple demonstration of what impact an interest rate increase would have on the mortgage payment of a home selling for approximately $250,000 even if home prices don’t increase:
Please feel free to call me with any real estate needs or questions.
With Best Compliments:
Seema Sinha, Realtor
8521 Leesburg Pike, Suite 100
Vienna VA - 22182
Mobile: (703) 343-5726
Office: (703) 564-4000
Associated Broker, NVAR Lifetime Top Producer
6707 Old Dominion, McLean, VA 22101