Does anybody remember that movie? That was a Clint Eastwood spaghetti western. Great movie, but not what this blog post is about today.
This post is about what does a few dollars more actually cost when you purchase a home. Let’s examine the math.
Let’s say that you found a house that you want to purchase and you have made an offer. The seller made a counter offer, you made a counter-counter offer and so on. You are now close. But yet, you are still $3000 apart. You offered to meet in the middle but the seller won’t go any lower on the price. And you are ready to move on from this home for a few dollars. But what will that $3000 actually cost you?
The obvious answer is $3000, correct? Not necessarily so. If you are paying cash, yes. It will cost you an extra $3000. But if you are paying cash, and you really want the home, will an extra $3000 in your savings account really make a difference in your life? That is a question that only you can answer.
But what if you are getting a mortgage? Then the answer is not $3000. The answer is, at today’s mortgage rate of 4%, $14.34 per month. Or if this makes you feel better, less than 48 cents per day. Do you really want to lose the house you want for 48 cents a day?
Also look at it this way. The sellers will get that extra $3000 as cash in their pocket. You won’t be paying the extra $3000 for the home until you have owned it for over seventeen years. Will you still be in that home in seventeen years? Statistically, no you won’t. So, odds are, you will never actually pay that $3000.
Here’s what I am saying. Do not lose that home you want for a few dollars more.
Start your search for your dream home by visiting us online at www.55plusinmonmouth.com , or call us. Bunny and Art Reiman – Realtors, at 732-616-6226