Discussing high mortgage interest rates and rising home prices with a mortgage broker in Austin. TX, can deter you from purchasing a home in the current real estate market. However, the cost of waiting to buy a home can be even higher. Discover the expenses you can incur when buying a home now vs. later in this informative guide.
A Home-Buying Delay Can Result in Higher Housing Prices
Long-term real estate market trends show a steady climb in housing prices. The market may dip slightly but there’s no guarantee that waiting to purchase a home will save you money in the long run. As prices continue to appreciate, you risk needing a larger home loan or down payment to secure the deal.
If your finances remain stagnant, you may struggle to save enough for the down payment or pay a larger monthly mortgage. Consider the cost of waiting to buy a home and accept that higher home prices are a strong possibility.
Inflation Affects the Price of New Homes
Is your heart set on purchasing a brand-new, turnkey home? You’ll find different pros and cons of waiting to find the right one, but keep the overall cost in mind. Inflation continues to impact how much homes cost and can raise prices even over a short period.
If you’re debating buying a home now vs. later, experts warn that inflation will significantly impact the price of new construction. Factor in all of the rising expenses that go into building new homes, including:
- Labor
- Land costs
- Lumber and building materials
Putting off purchasing a home may hurt your finances in the end. Take advantage of current prices instead of watching the cost of waiting to buy a home increase.
Consider Your Rental Costs Before Becoming a Homeowner
Some people choose to rent a property before purchasing a home. When you compare rent to other housing expenses, the cost of waiting to buy a home tends to be much higher than securing a mortgage right away.
You’ll also miss out on mortgage and property tax deductions available to homeowners, which can ultimately keep more money in your pocket every year. Rather than pay rent each month to a landlord, you could pay a similar amount as a mortgage payment and build home equity.
Explore Your Options With a Qualified Mortgage Broker
The cost of waiting to buy a home has its drawbacks, but how can you be sure if now is the right time to purchase? Reach out to Champions Mortgage Team to discuss your home loan options and ways you can secure a mortgage that suits your financial situation.
We’ll guide you through the home loan process so you can end up in your perfect home. Give us a call at (281) 727-2500 to speak with a specialist today.
Frequently Asked Questions
Do you want to learn more about the risks of purchasing a home now or later? Get answers to common questions below.
Do Certain Home Loans Make Buying Homes More Affordable?
Yes, some types of mortgage loans make buying a house now more affordable with perks like lower down payment requirements or flexible interest rates.
Can You Predict When Mortgage Interest Rates Will Drop?
No, it’s difficult to predict interest rate changes because they depend on various economic factors, including Federal Reserve policies.
Is It Better to Buy a Home With Higher Interest Rates?
Compared to the cost of waiting to buy a home, it’s better to purchase now, even if interest rates are high. Refinancing your home loan allows you to secure a lower interest rate in the future.
