Lower Price and Cost You a Higher Monthly Payment
Reported yesterday in the P.I., by Aubrey Chohen, on the front page, and above the fold was an article making an attempt to sway picky buyers into making a move. Probably the best article yet since headlines a few months ago which warned local buyers and sellers of a potential slump.
The short of it is that buyers can end up paying more, or get less of a home by waiting for prices to drop.
Someone who could pay about $2,600 a month, assuming a 30-year fixed-rate loan with 20 percent down, could afford a $562,500 house at an interest rate of 5.75 percent, $533,062 at 6.25 percent and $506,000 at 6.75 percent.
Considering this, smart buyers are doing what they can to lock in historically low interest rates, rather than waiting for listing prices to fall.
…the average King County house sold for 98 percent of its original list price, declining from $450,000 to $441,000. The monthly payment would have been $100.15 lower with the original price and the lower interest rate.