Real Estate Pueblo

We all know procrastination can be a killer. Everyone puts things off at times, but there are few instances where putting something off can hurt you as much as putting off purchasing a new home, especially right now, in 2018. There are a number of reasons you shouldn’t put off a new home purchase right now. Two of the strongest reasons are as follows:

First, interest rates are rising. The economy is heating up. And with strong economic growth comes the possibility of inflation. Inflation is generally good for a homeowner, because the price of their home, which is typically a highly leveraged asset, tends to rise in periods of strong economic growth. However, it can be a killer for someone trying to purchase a new home. This is due to the fact that not only are homes getting more expensive, but the interest rates of home mortgages tend to increase too. Putting the increase into dollars and cents, Freddie Mae expects mortgage rates to increase by around .75% by this time next year. And CoreLogic expects Homes For Sale Pueblo to appreciate by 4.3% in the same time. That means that if you wait a year to purchase a home that’s $250,000 today, that same home will cost you over $260,000 by next year. Your monthly mortgage payment will have increased by $179 per month! That’s right, you will be paying an extra $2144 per year, which equates to $64,282 more over the life of your mortgage. Why? Because you delayed your home purchase by only a year!