February 12, 2010 at 03:15 PM
Here is a quick illustration on why it is not a good idea to wait to sell and buy if you are at all able to do so now…
Current Numbers for a $300,000 loan amount….
- Loan Amount: $300,000.00
- Interest Rate: 5%
- Loan Term: 30.00 years (360 months)
- Mortgage Payment: $1,610.46
- Total Interest: $279,769.69
- Total Payments: $579,769.69
Numbers if you wait until 2016 when the market is projected to be anywhere near 2006 prices.
- Loan Amount: $340,000.00 (This is likely what a $300,000 home today will cost when the prices go back up)
*Interest Rate: 6.5% (This is a estimate of the rate, it could be much higher)
- Loan Term: 30.00 years (360 months)
- Mortgage Payment: $2,149.03
- Total Interest: $433,652.21
- Total Payments: $773,652.21
So you would pay roughly $540 more a month. $40,000 more for the same house and $154,000 more over the life of the loan!
Even if you don’t make a dime on the home you’re selling if you have the ability to buy now, you will way better off in the long run.
Posted by:
Mickey Koch
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February 12, 2010 at 01:07 PM
The Koch Team
Shorewest - Menomonee Falls
N94 W17900 Appleton Avenue
Menomonee Falls, WI 53051
Contact me
Direct Line: 414.416.0704
Fax: 262.782.6637
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mkoch@shorewest.com
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thekochs.shorewest.com
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