Did waiting end up making sense?

There are many people who debated purchasing a home over the past year, but ultimately did not. Whatever their reasons were for their conclusion, let’s look at if their decision to wait made sense.

In 2014

A 30 year fixed rate on January 2, 2014 was 4.53%. As seen on the chart below, a mortgage payment (including principal and interest) for a $250,000 home would have been $1,271.17.

Even though interest rates dropped below 4% and ended 2014 at 3.87%, the price of homes have increased by 4.8% over the same time.

Now, that same home is $12,000 more and now costs $262,000. Recent reports by Freddie Mac show the average 30-year fixed rate is currently 3.73%.Slide1

Many may say, waiting a year made total sense since it seems they’re saving $60 a month. And they’d be right, over the course of the year they saved $729.36.

But what wasn’t realized is the price of the home they now want to purchase increased by $12,000. Even if they put a 5% down payment down, they will have to come up with an extra $600 at the start of the process. So in reality they’ve only saved $129.36 in a year.

Is an $11 per month savings really worth waiting to find a home to call your own after you weigh all the benefits that come along with that?

  • Building equity you can borrow against in the future
  • Having a safe, comfortable environment that fits your family’s needs
  • Having control over your space
  • Tax benefits
  • And so many more…

The Bottom Line is…

The experts are predicting that homes will appreciate by another 4% and interest rates will increase by a full percentage point by the end of 2015. If you are in a position to be able to buy a home before these predictions become reality, let us know and we would be glad to help!


Debbie Woolard Group
(757) 288-0194
Excellent Service – Excellent Results
Buyers Agent/Sellers Agent


Our focus is helping people find and exchange dream homes. We are seeking buyers and sellers that desire concierge level service including great communication, extraordinary representation and a continuing relationship for years to come.

You and your referrals will be provided with a great team of professionals to help with each step of the process. We are committed and passionate about negotiating the best possible terms and serving our clients at the highest level. Our goal is to create memorable real estate experiences where our clients become raving fans.

Realtors with the Debbie Woolard Group service Virginia Beach, Chesapeake, Norfolk, Suffolk, Hampton, Newport News & Portsmouth with specialist in seller representation, buyer representation, military relocation, first time home buyers, short sales and real estate investment.