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    What If I Wait A Year to Buy a Home?

    National home prices have increased by 5.4% since this time last year. Over that same time period, interest rates have remained near historic lows which has allowed many buyers to enter the market and lock in low rates.

    As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price but instead about the ‘long-term cost’ of the home.

    The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Insights Reporthome prices will appreciate by 4.8% over the next 12 months.

    What Does This Mean as a Buyer?

    If home prices appreciate by 4.8% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

    Bottom Line

    If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

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    The DeGrood Team did an excellent job from beginning to end. I am very satisfied with the service I received as well as the level of professionalism. I am a first time home buyer and was nervous going into this whole experience, and even doubted that I could really even do it. Amna, my agent, was extremely helpful throughout the entire process. She was super patient with me and very knowledgeable. She was able to answer every question I had and did an amazing job helping me find a home. Afte…
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