After 3+ years of thinking of selling and buying a larger home, my husband and I finally took the plunge this year.
We recently closed on our new home at a 3.75% interest rate. If we had the interest rate we had on our old home (5.625%) we would have had to buy a home for $70,000 less to have the same monthly payment!
Since we closed, the rates have went up to 4.125%. Even that little jump would have resulted in $10,000 difference in purchasing power. This doesn’t even begin to break down the difference in how much of your monthly payment goes towards principle based on the interest rate that the potential savings over the life of your loan.
That is something to think about if you have been waiting for the market to improve to sell your current home and “move up”. As the market continues to improve, the sale price of your home may increase, but so will the home you are looking to buy and the interest rates too.
I’m glad I listened to my own advice!
By Sarah ODonnell, talktotucker.com/sarah.odonnell