Our Secret to buying a home cheaper than 2019
Affordability in Missoula’s housing market seems to be all anyone is talking about. Homes are appreciating at an average of 5-8% a year and seemingly pricing many local Missoulians out of the market. Although this may be true, buyers should not overlook that they can purchase homes cheaper today than they could in 2019 or even 2018.
It all starts with the interest rate.
In a recent addition of Mortgage Monitor, Black Night explains:
“Despite the average home prices increasing by nearly $13,000 from just over a year ago, the monthly mortgage payments required to buy that same home has actually dropped by 10% over that same span due to falling interest rates…
Put it another way, prospective home buyers can now purchase a $48K more expensive home than a year ago while still paying the same in principal and interest, a 16% increase in buying power.”
Looking at your home as a long-term investment?
If your home continues to appreciate in value 5-8% and your interest rate is 3.5%, you are making 1.5-4.5% on your money every month and essentially zeroing down or washing out the interest. If you add equity paydown and interest write-offs, the returns are even better.
Our recommendation:
Instead of refinancing your current home and committing yourself to living there long term, we encourage you to find the right “forever home” now and take advantage of the rates. That move up or move down now will save you thousands in the future and put you in a home that is ideal for the long term happiness.
Don’t want to look back later and wish you at least investigated the options. Contact us at 406-926-6767 to review your options.
Jeremy Williams – Broker / Owner
The Bannack Real Estate Group
