Buying A Home? Do You Know The Difference Between Cost &...

Buying A Home? Do You Know The Difference Between Cost & 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.

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 three-quarters of a percentage point over the next twelve months.

According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 5.2% over the next 12 months.

What Does This Mean as 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 today if home prices appreciate by the 5.2% predicted by CoreLogic over the next twelve months:

http://www.simplifyingthemarket.com/2015/12/14/buying-a-home-do-you-know-the-difference-between-cost-price/?a=242769-4eb2112ad1caac540e99a63dd199d5ed ❤️ #share #mortgage