Presently, many other homeowners feel stuck in their homes yet they don't really understand the effect of waiting to sell and how it is affected by interest rates.
Here is how 5 percent increase in the market can really cost you:
Let's say a couple is in a two hundred thousand dollar home and they want to wait until the market goes up 5 percent in order to get $210,000 because that's where they can make ten thousand dollars.
The trade-up home their looking at cost 350,000. If they apply that same five percent and that home is going to go up to 360,750, so instantly waiting for ten thousand dollars is going to cost them over seventeen thousand dollars. Now they’re already behind by waiting for the market to increase when trading up.
The most essential thing is to look at the impacted interest rates. Let’s say the current home was acquired for two hundred thousand dollars and all of these numbers are based on 100 percent financing. So their current monthly payment for a thirty-year mortgage is $1,340 dollars. If they purchase their new home now for $350,000 at a 4 percent interest rate then their monthly payment is only going to be 1,670 dollars that only a $330 dollar-a-month increase for such a step in increasing their lifestyle possibly doubling the square footage of their home.
Let's say they wait for the market to return to a higher price or when the market goes up we know the economy is getting better. However, when economy gets better the FED is not going to subsidize the interest rate so seven-percent is probably even optimistic because traditionally and historically interest rates run about 10 percent. As for point of illustration lets say 7% what they're getting right now their mortgage payments can be $2,444 dollars a month so first they lost. 17,500 just by waiting because the increase in their higher priced home is going to cost them $775 dollars a month more to live in that new home instead of three hundred thirty dollars a month.
At CATALYST REAL ESTATE EXPERTS we offer our exclusive Builder Trade Up Program
The Builder Move Up Program is especially suited for growing families that need more space to accommodate their evolving lifestyle.
With the Builder Move Up Program, you’ll be able to buy your dream home, while saving thousands in commission dollars on the sale of your home.
Get an exclusive Builder Trade Up Program
Catalyst Real Estate Experts
How Does It Work?
1. Register to get started in the program
2. Meet with a Established Listing Specialist
3. Institute the proven marketing plan
4. List and sell your current home at a significantly reduced commission rate
5. Close on your new home and receive an additional commission rebate
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GET STARTED TODAY by calling us @ 469-500-4663 or go online
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Catalyst Real Estate Experts
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