Today's Rate or Tomorrow's Price
Is it cheaper to wait for a lower home price tomorrow or to lock in a lower mortgage rate today?
Use this calculator to compare a home purchased at the current price to the same home one year from now at a lower price, yet potentially higher rate.
Enter Today's Home Price less a drop in value =
Enter the Down Payment Factor - Same dollar amount will be applied to both scenarios.
Down Payment Percentage =
Dollars Down
Loan Amount will Equal
Enter Rates and Loan Term - Today's rate and your expectation for rates one year from now
Interest Rate
Loan Term
Monthly Principal & Interest
Enter the Property Expenses
Annual R.E. Taxes
Hazard Insurance
Grand Total Monthly Payment
Monthly Payment Difference =
Enter the Cost of Renting the Same Home and Compare the Annual Expense
Total Payments at 12 months per month for rent =
Calculate Totals for any Number of Years Years to calculate for =   
Total Interest Paid
Total Payments Made
Total Principal paid
Total Cost (payments - principal paid)
Total Cost Difference =
As you can see, with rates rising, waiting can have its own cost. This can be true even if the price you pay for a home next year is less than it is this year. In many areas, it's now less expensive to finance a home than it is to rent one. Taking action while there are still abundant sellers that may also be concerned about lower prices can allow you to strike a great deal right now. Once that attitude turns and especially if rates increase too, the cost of buying a home may begin to rise at a pace that some of us will no longer be able to afford.

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