If you have been thinking of buying recently, you are not the only one. Homes for sale in Lynden are moving quickly. First Time home buyers have been purchasing in numbers that are the highest they have been in a few years. If you are a first time home buyer, it may be time to take the plunge in the Lynden Real Estate market. I know it takes a lot of work and time to buy a home and that can feel overwhelming. First you have to get approved for a loan, then you have to search for a qualified Lynden real estate agent, then you have to search for that perfect Lynden home for sale and the list goes on. Trust me, I have been helping Lynden buyers and sellers for years and I know how intimidating and stressful it can be when you buy your first home for sale in Lynden. Part of a Lynden Realtors job is to help you navigate the process in a way that is not only seamless and easy, but helps you understand how real estate works step by step. You may love where you live or renting might make you feel like you have flexibility, so what is wrong with waiting to buy? Well, a couple of things. Read on as I break down what you could face if you put this off even for just another year based on expert predictions.
Let’s say you find your dream home for sale in Lynden. It is in your favorite neighborhood, has the square footage you wanted as well as all the extras and just so happens to be within your ideal budget of $250,000. With today’s mortgage rates of roughly 4% (give or take depending on the day), you would be looking at an estimated monthly payment of about $1200, principal and interest only, give or take a few dollars. Chances are, you are probably spending pretty close to that in your rent. So you may wonder what the harm is in waiting a little longer. Experts predicted almost a year ago that home prices would increase in 2016. They were correct. Prices aren't sky rocketing just yet, but they are steadily going up. For the sake of an example, let's say that the home prices reach that 5% increase predicted by the end of 2016. This means the home home for sale that was within your budget is now almost $13,000 more. Interest rates are also predicted to go up to 5%. So far, they have stayed historically low, which means you could snap this home up and lock in a great rate now. If you wait, and expert predictions are correct, your payment would go up roughly $200 more a month. This doesn't seem like a lot. Over a period of time, it certainly is. $2600 annually and $78,000 over the course of a 30 year loan. So while $200 doesn’t seem like a lot in the grand scheme of things, in the big picture, it is a substantial amount of money.
There is a reason why so many millennials are flocking to the Lynden housing market, and it is a good one. Not only are you still getting in on low interest rates, but you are saving yourself an ample amount of money. If you are ready to buy Lynden real estate, give me a call a 360-410-0848.