Buying A Home To Lock In Your Housing Costs


Buying A Home To Lock In Your Housing Costs
By Scott Rogers • April 26, 2022
Yes, home prices are going up... and yes, interest rates are going up. As a result, your mortgage payment (if you buy a house) will be higher now than if you had bought a home a year ago. But... since I am not able to offer time travel services to my buyer clients... home buyers need be asking whether they should buy a home now within the context of how it compares to if they had bought a home a year ago... ...instead, they need to be asking... ...whether to buy a home today in the context of how it compares to continuing to rent a house for the next few years. Options for would-be buyers would seem to be... 1. Buy now (ish) 2. Buy later 3. Rent forever Buy now... this will allow you to lock in the majority of your housing costs. Your mortgage payment will almost certainly include principal and interest (on the loan) as well as property taxes and insurance... and the taxes and insurance portion can go up over time... but buying a home now with a fixed rate mortgage will allow you to lock in your housing costs. Buy later... it seems likely prices will likely be higher with only a small chance that they will be lower... and mortgage interest rates will likely be higher with only a small chance that they will be lower... meaning your housing costs will likely be higher if you buy later rather than sooner. Rent forever... rental rates keep going up, and up, and up... so if you don't buy a home, and keep renting a home, your housing costs will likely continue to go up over time. Certainly, buying a home isn't the right choice for everyone in every situation... but buying a home does give you the benefit of locking in your housing costs when many of your other costs will otherwise continue to increase given the current inflationary climate! Receive Updates by Email Recent Articles: Is There A Price You WOULD Pay For This House? There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 24, 2024 (unless otherwise noted).
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