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BUY OR WAIT?

THERE IS A COST OF WAITING

Assumptions:

  • Example below based on a $450,000 30-year conventional loan
  • Modest 6% appreciation in home prices
  • 90% financing, just 10% down
  • Rates drop by 1.5 percentage points

Example
Home Purchase

$
%
%
%
%
%

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Years to Recapture
Lost Equity

10 Years

Lost Equity and
Down Payment

$33,000

Understand the
Cost of Waiting

Waiting could save you monthly but it will cost you thousands more over the life of the loan.

Buy Now Buy Later Change
Purchase Price $500,000 $530,000 $30,000
Down Payment $50,000 $53,000 $3,000
Loan Amount $450,000 $477,000 $27,000
Loan Payment $3,070 $2,784 $-286
Average Fees $5,625 $5,963 $338
Interest Rate 7.25% 5.75% -1.5%
Estimated APR 7.454% 6.332% -1.122%

Values are for illustration purposes only.

Note: This calculator is made available to you as an educational tool only and calculations are based on borrower-input information. This is not an advertisement for the above terms, interest rates, or payment amounts. Envoy Mortgage does not guarantee the applicability of the above terms in regards to your individual circumstances.

Depending on the product and down payment selected, Private mortgage insurance, FHA upfront mortgage insurance, VA Funding Fee and USDA guarantee fee may be required.

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