This infographic from Forbes.com explains pretty clearly the long term benefit of buying a home in Knoxville versus renting. The American dream is alive an well and as this shows can in turn help you save for retirement. Renting may be a good option if you are planning to stay in a location for a short term, but if you plan to live in your home for an extended period, buying is the right move.
Why waiting and getting a lower price on a Knoxville home may end up costing you more!
Couple today’s ultra-low interest rates and the low home prices being offered by the Knoxville housing market and you get “perhaps the best deals of a generation,” notes a recent article by Bloomberg Businessweek.
With mortgage rates that have been hovering at record lows for the past few weeks (4 percent range or even lower on 30-year fixed-rate mortgages, according to Freddie Mac’s mortgage market survey) and Knoxville home prices that are down double digit percentages since the boom in the market. “It’s hard to see the possibility of losing on a home purchase right now, with these mortgage rates,” says economist Dean Baker. “Prices may go lower, but not by much.”
The article notes the following scenario: Buying a $300,000 Knoxville home with a 4 percent mortgage rate and a 20 percent down payment would mean a $1,145 monthly payment. The Mortgage Bankers Association recently predicted that home prices may fall another 3.5 percent by mid-2012 but mortgage rates will INCREASE by a half-point. So for that same loan under that scenario, a Knoxville home would sell for $289,000 while the monthly mortgage bill would be $1,171–only a $26 difference.. HIGHER.
Actually waiting for the lower sales price would cost you $18,037.50 more in interest payments and $9,237.50 more in total payments over the life of the loan. Couple these numbers with the price of lost time in enjoying a Knoxville home that may offer you and your family a better standard of living or a better school district and the cost increases exponentially.
Run the numbers yourself and you will see that now is the time to buy. BEST TIME EVEEEEERRRR! 🙂
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