JACKSON, Wyo. — We all like good decisions that save money, whether it’s clipping coupons for Smiths or getting the best Black Friday Deals. But how does timing affect our purchasing power when it comes to buying our home?
Is it better to wait to save more money for the down payment? Or should you lock in a historically low interest rate today? We live in a monthly payment world, and nothing affects a monthly payment more than interest rates.
According to a report by Jackson Hole Sotheby’s International Realty, the median sold single-family home price in Teton County, WY was $1,750,000 in 2019. In Teton County, Idaho, it’s $438,500 and in Star Valley, it’s $315,000. Looking at a 30-year fixed interest rate, let’s see how this affects the monthly payments.
If you are able to afford $2,000/month or $5,000/month, how much bang can you get for your buck because of today’s interest rates?
So, is it best to wait to save more for a down payment? With an interest rate of 4%, if you save an extra $10,000, it only affects your monthly payment by a whopping $48/month. Today’s low interest rates might signal today – and not tomorrow – is the right time to start shopping for a home.
Of course, everyone’s situation is unique. If you or anyone you know is interested in investigating your options, the team at The McPeak Group would love to chat with you. Happy New Year and Happy House Hunting!
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Written by Jerilyn Arriola