Selling your Louisiana Home? Click here for a free home value report
Buying an Louisiana Home? Click here to search homes for sale
Buying an Louisiana Home? Click here to search homes for sale
Many people ask us how much money it costs to buy a home in today's market. We look at it another way, asking instead, how much does it cost not to buy? Right now interest rates are near historic lows, which means it costs a lot less to borrow money now. With rates expected to rise, it will cost you more money to buy later than to buy now.
If interest rates increase by only 1%, the cost of the house you want to purchase rises 10%! If you are able to purchase a $200,000 house in today’s market, a rise in rates as small as 1% would make it so that you could only afford a home worth $180,000! That is a $20,000 difference in the type of home you can afford!
There is a significant difference between homes priced at $200,000 and those priced at $180,000. For instance, that difference in price often accounts for the location of a home, which is often a huge factor for buyers. The cheaper home also won’t have the same amenities, such as granite countertops and stainless steel appliances. Condition of the home may be affected by that price difference as well -- that 1% rise in rates could be the difference between purchasing a 20-year-old home and a five-year-old home.
If you’re a first-time home buyer, there are a lot of really great options out there. If you want to get out of your rental situation in order to become a homeowner, there is a 100% financing option available. The best news is that you don’t need to be a first-time buyer to take advantage of it!
If you’re interested in your home buying options, or if you have real estate questions of any kind, please don’t hesitate to reach out to us at any time. We would love to hear from you!
If interest rates increase by only 1%, the cost of the house you want to purchase rises 10%! If you are able to purchase a $200,000 house in today’s market, a rise in rates as small as 1% would make it so that you could only afford a home worth $180,000! That is a $20,000 difference in the type of home you can afford!
There is a significant difference between homes priced at $200,000 and those priced at $180,000. For instance, that difference in price often accounts for the location of a home, which is often a huge factor for buyers. The cheaper home also won’t have the same amenities, such as granite countertops and stainless steel appliances. Condition of the home may be affected by that price difference as well -- that 1% rise in rates could be the difference between purchasing a 20-year-old home and a five-year-old home.
If you’re a first-time home buyer, there are a lot of really great options out there. If you want to get out of your rental situation in order to become a homeowner, there is a 100% financing option available. The best news is that you don’t need to be a first-time buyer to take advantage of it!
If you’re interested in your home buying options, or if you have real estate questions of any kind, please don’t hesitate to reach out to us at any time. We would love to hear from you!
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