Time Magazine Article Says “Don’t Wait to Buy”

 A recent Time Magazine article concluded that by waiting one year to buy because you want to wait to see what the market does may not save you as much money as you might think. In fact, it might not save you anything at all. Consider a home priced today at $218,900. If you put 20% down and get a 30 year fixed rate mortgage at an interest rate of 5.5%, your monthly payment will be $994. Let’s say you wait one year and that same house decreases in value by 10% and you can purchase it for $197,000. Chances are pretty good that in one year, interest rates will have gone up and that same 30 year fixed rate mortgage could have a 6% interest rate. Your monthly payment is still going to be around $994 so really, you’ve saved nothing. If you’re emotionally and financially ready to purchase a home, now is a wonderful time to buy.