This is a YouTube video titled "Calculating the Cost of Waiting on Your New Home!" containing a monologue or presentation from January 4, 2025, discussing the financial implications of waiting to buy a home due to fluctuating mortgage rates. The speaker analyzes mortgage rate changes, monthly payment differences, refinancing costs, and potential home value appreciation to illustrate the cost-benefit of buying now versus waiting.
How much is the cost of waiting for your new home? A few months back we saw average mortgage rates drop to around 6%, high fives in some scenarios. And now average 30 year fixed conventional rates are around 7% for the typical lender. This naturally has a lot of potential home buyers waiting until rates get back around 6% before they buy. Let's break this down. If you take an average $400,000 loan amount, the difference of 1% is $263 per month in the payment. Let's multiply that out over the next 12 months. That's 3156 in extra payments. So if you were to buy today and then refi later, let's say cost 2, 3 grand extra to refi on top of the $3,000 and change of extra payments, that's 5 to 6 grand extra that would be spent that same $4,000 house with a very conservative estimate of 4 to 5% increase in value, which would be a lot more. If rates drop, that'd be 16 to $20,000 more valuable that house will be. So still, take the five or six thousand dollars hit for the refi. The house goes up sixteen to twenty grand, you're ahead ten to fifteen thousand dollars. That would be your average cost of waiting.
