Did you delay listing your home because you are afraid you can’t find a new one?
If that’s the case, I have good news for you … it has never been more affordable to move up to a luxury home.
Mortgage interest rates just dropped below 3%. That’s the lowest they’ve been in 50 years.
With low interest rates you can afford a larger, more expensive home.
The chart below shows monthly payments (principal & interest) on a $300,000 loan over the past 5 decades. In the 1980’s homeowners had to pay 2.5 times what you pay now.
How Your Affordability Increased in Just One Year
Interest rates were higher than 4% for most of 2019. You paid $1,432 a month for your $300,000 mortgage.
With interest rates below 3%, the same loan would only be $1,265 a month this year. You save $167 a month, $2,004 per year, and $60,120 over the life of the mortgage.
If you can afford $1,432 a month, your loan amount would increase to $332,655 at 3% interest. You can buy a 10% more expensive home.
Why Move up Buyers are Triple Winners
Let’s assume you currently own an average suburban home worth $300,000, and you want to move up to a $500,000 luxury residence.
Here’s how you win 3 times:
- Appreciation of Current Home Your current house has substantially increased in value. Over the past 12 months the average price of homes between $200,000 and $400,000 has increased by 5.9%.
- Low Appreciation of Upscale Homes Luxury homes on the other hand did not appreciate at the same rate. They take longer to sell, and owners are more likely to accept offers below list price.
- Low Interest Rates Your affordability has increased by 10% in just one year due to interest rates below 3%.
If you are ready to MOVE-UP and WIN, Click here to schedule your FREE Virtual Consultation. Call or Text me at (614) 975-9650!