Calculator For Buyers Purchase Now Or Save More

Dated: 04/11/2017

Views: 45

Calculator for Buyers: Purchase Now or Save More?

Image title


DAILY REAL ESTATE NEWS | MONDAY, APRIL 10, 2017

While nearly 40 percent of aspiring homeowners believe they need to put down 20 percent on a home purchase, the truth is the average down payment was just 11 percent in 2016, according to the National Association of REALTORS®. To help your clients understand the strength of their current financial profile when it comes to buying a home, mortgage industry blog MGIC Connects has created a Buy Now vs. Wait calculator that can show them whether they're better off waiting and continuing to save for a bigger down payment or buying now with less money upfront.


The calculator factors in information such as the current rent your clients are paying, amount of their monthly savings, and creditworthiness. Users can submit other information such as desired home price, current amount of savings for a down payment, and an estimated interest rate. MGIC Connects offers the following example of how its calculator works:



A consumer has saved $10,000 of the $40,000 needed for a 20 percent down payment. She can add about $6,000 a year in savings to that. She wants to purchase a $200,000 home. The calculator allows her to see the cost of the home purchase if she did a 3 percent or 5 percent down payment. The calculator also shows that if homes prices appreciate, say, at 3 percent annually, the amount she'd need for a 20 percent down payment would be $48,552, and she would need more than 6 years of savings before she could buy.


During that time, she will have paid more than $80,000 in rent, while her home equity position would be more than $72,000 had she bought six years ago. None of this is meant to encourage prospective borrowers to buy a home before they are ready. It is in everyone's best interest for borrowers to succeed, so borrowers need to be comfortable not only with the mortgage payment but also the other responsibilities that come with homeownership.


Source: “Waiting to Save for a 20% Down Payment Can Cost Homebuyers Money,” MGIC Connects (April 5, 2017)



Source: http://realtormag.realtor.org/daily-news/2017/04/10/calculator-for-buyers-purchase-now-or-save-more?om_rid=AAEo--&om_mid=_BY6$fMB9ahVcma&om_ntype=RMODaily


www.RaulAcuna.com

#RaulAcunaRealtor #RemaxTime #TeamRaulAcuna #RealEstate #RealtorMag #BuyNowvsWait 

Blog author image

Raul Acuna - CA BRE #01708572

Raul Acuña - Raul has been in the Real Estate Industry since 2005. Raul began working at an REO brokerage before opening his own REO company in 2010. Raul has a business degree from Cal Poly Pomona, ....

Want to Advertise on this Site?

Latest Blog Posts

Are We About To Enter A Buyers Market

Home sales are below last year’s levels, home values are appreciating at a slower pace, and there are reports showing purchasing demand softening. This has some thinking we may be entering a

Read More

Fall Brings Price Drops For A Quarter Of Homes

Fall Brings Price Drops for a Quarter of HomesShare of homes with price drops reached a record-high in SeptemberSigns continue to point toward a changing market that’s letting homebuyers

Read More

Thinking Of Selling Your Home Why You Need A Pro In Your Corner

With home prices on the rise and buyer demand strong, some sellers may be tempted to try and sell their homes on their own (FSBO) without using the services of a real estate professional.Real estate

Read More

Coming Soon

Coming Soon!! Horsethief CanyonComing soon to the Horsethief Canyon area. This lovely 3 Bed, 2 bath, home with 1,312 sq ft of living space, on a 8,276 sq ft lot. Will be hitting the market by

Read More