Buy Now Or Wait?
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Example Home Price $200,000 |
Home prices decrease by 5% Home Price: -5% $190,000 |
Home prices decrease by 10% Home Price: -10% $180,000 |
|
Interest Rate 6% |
Interest rates increase by 0.5% Interest Rate: +0.5% 6.5% |
Interest rates increase by 1.0% Interest Rate: +1.0% 7% |
|
Payment $1,199 |
Payment $1,201 |
Payment $1,198 |
Even a slight increase in mortgage interest rates can offset a significant drop in home prices. There is little to gain in this scenario and much to lose if home prices rebound or rates jump.
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TRADE UP?
