I thought you might benefit from a real life Real Estate experience happening right now...
At the moment, I am currently coaching friends in their 30s on the purchase of their first home. Like many of their peers, they are waiting for their credit scores to improve so they can obtain a loan that is half a percent lower interest. Of course they are continuing to pay rent and not gain the advantage of building equity.
At the moment, I am currently coaching friends in their 30s on the purchase of their first home. Like many of their peers, they are waiting for their credit scores to improve so they can obtain a loan that is half a percent lower interest. Of course they are continuing to pay rent and not gain the advantage of building equity.
So I showed them the power of EQUITY. If they wait 12 months (and if rates don't rise during that time - unlikely in our local market) they will save less than $1100 on their future annual interest on a $300K home. At the same time, they will not take advantage of paying down $4300 in principal in that same year. To make the situation worse, they will face an additional year of mortgage payments by waiting.
(This picture does not get easier, since with an amortized loan progressively more money pays down principal in subsequent years 2, 3, 4, etc.) Even if they are fortunate enough that the home they are looking to buy does not increase in value in the next 12 months, they have put themselves further behind by WAITING...
(FYI, this year I joined a smaller but more experienced and service-oriented Real Estate practice: Nashville Realty Group - you can reach me for advice at bill@nashvillerg.com or at my same mobile number 615-480-2955)
It won't surprise you to learn: this Real Estate Agent is invested in YOUR happiness!
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