{"id":6263,"date":"2020-09-22T10:00:00","date_gmt":"2020-09-22T10:00:00","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=6263"},"modified":"2020-09-22T10:00:00","modified_gmt":"2020-09-22T10:00:00","slug":"the-cost-of-a-home-is-far-more-important-than-the-price","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=6263","title":{"rendered":"The Cost of a Home Is Far More Important than the Price"},"content":{"rendered":"
\n

\"The<\/p>\n

Housing inventory is at an all-time low. There are 39% fewer<\/a> homes for sale today than at this time last year, and buyer demand continues to set records. Zillow <\/em>recently reported<\/a>:<\/span><\/p>\n

\n

“Newly pending sales are up 25.5% compared to the same week last year, the highest year-over-year increase in the weekly Zillow database.”<\/em><\/p>\n<\/blockquote>\n

Whenever there is a shortage in supply of an item that’s in high demand, the price of that item increases. That’s exactly what’s happening in the real estate market right now. CoreLogic’s<\/em> latest Home Price Index<\/a> reports that values have increased by 5.5% over the last year.<\/p>\n

This is great news if you’re planning to sell your house; on the other hand, as either a first-time or repeat buyer, this may instead seem like troubling news. However, purchasers should realize that the price<\/strong> of a house is not as important as the cost.<\/strong> Let’s break it down.<\/p>\n

There are several factors that influence the cost of a home. The two major ones are the price of the home<\/strong> and the interest rate<\/strong> at which a buyer can borrow the funds necessary to purchase the home.<\/p>\n

Last week, Freddie Mac<\/em> announced that the average interest rate for a 30-year fixed-rate mortgage was 2.87%. At this time last year, the rate was 3.73%. Let’s use an example to see how that difference impacts the true cost of a home.<\/p>\n

Assume you purchased a home last year and took out a $250,000 mortgage. As mentioned above, home values have increased by 5.5% over the last year. To buy that same home this year, you would need to take out a mortgage of $263,750.<\/p>\n

How will your monthly mortgage payment change based on today’s lower mortgage rate?<\/strong><\/h4>\n

This table calculates the difference in your monthly payment:\"The<\/a>That’s a savings of $61 monthly, which adds up to $732 annually and $21,960 over the life of the loan.<\/p>\n

Bottom Line<\/strong><\/h3>\n

Even though home values have appreciated, it’s a great time to buy a home because mortgage rates are at historic lows.<\/p>\n

Content previously posted on Keeping Current Matters<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

\"TheHousing inventory is at an all-time low. There are 39% fewer homes for sale today than at this time last year, and buyer demand continues to set records. Zillow recently reported: “Newly pending sales are up 25.5% compared to the same week last year, the highest year-over-year increase in the weekly Zillow database.” Whenever there […]<\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","footnotes":""},"categories":[3,88,84,118,89,121],"tags":[],"class_list":["post-6263","post","type-post","status-publish","format-standard","hentry","category-blog","category-first-time-home-buyers","category-for-buyers","category-interest-rates","category-move-up-buyers","category-pricing"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/6263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6263"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/6263\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}