Mortgage Rates: The $650K Mortgage Example

✅ For Business Inquiries: vip@kasamasells.com ☎️ Call Us At: 707-681-5295 ============================= 🏡 Want to Compare Your Numbers? If you want to run the buy-now-versus-wait scenarios based on your situation, send a message with the word: PAYMENT Team Kasama Lee can help you look at the numbers and understand the different scenarios. ☎️ Call Us At: 707-681-5295 📧 Business Inquiries: vip@kasamasells.com 🌐 www.kasamasells.com Subscribe for more home-buying education, mortgage discussions, real estate market insights, and buyer strategies. Payment examples are for illustration and are not a loan quote. Actual payments vary based on loan terms, taxes, insurance, down payment, credit, and other factors. ============================= What does a 1% difference in mortgage rates actually cost you? If you're considering buying a home, you may be thinking: “I'm going to wait until mortgage rates come down.” That can sound like a logical strategy. But before you decide to wait, it's worth translating that 1% difference into actual dollars. Using a $650,000 mortgage as an example: 🏡 6.5%: approximately $4,108/month principal and interest 🏡 7.5%: approximately $4,544/month principal and interest That's approximately $436 per month, or about $5,232 per year. And yes, $436 matters. But there's another side of the equation that buyers need to consider: What happens to the purchase price while you're waiting? In this video, Kasama Lee breaks down why the mortgage rate isn't the only number you should be watching. We discuss the potential impact of home prices, competition, seller concessions, rate buydowns, refinancing, rent, and your overall financial situation. The goal isn't to tell every buyer to buy now or wait. It's to help you ask a better question: “What does waiting need to accomplish for me financially?” Because if rates eventually decline, refinancing may potentially give you an opportunity to change your financing, subject to qualification and costs. But you can't refinance the original purchase price of the home. That's why the decision should be based on your actual numbers, not simply whether a particular interest rate feels too high. 00:00 What Does 1% Higher Interest Really Cost? 00:26 The $650K Mortgage Example 01:23 Stop Shopping the Rate. Shop the Whole Equation. 02:22 What Happens to Home Prices While You Wait? 02:44 The Rate Can Change. The Purchase Price Can't. 03:48 What If Lower Rates Bring More Buyers Back? 04:44 A Lower Rate on a Higher Purchase Price 05:13 Calculate Your Break-Even Number 05:44 The $5,232 Annual Difference 06:28 Buying Now vs. Waiting 07:03 Don't Try to Time Two Markets 07:29 Interest Rates vs. Home Prices 08:02 Questions to Ask Before Buying 08:34 The $436 Difference Revisited 09:03 Buy Now or Wait? 09:32 You Can't Refinance the Purchase Price 09:56 Send "PAYMENT" for a Personalized Comparison 10:24 What Buyers Are Negotiating Right Now Subscribe to Kasama's channel for new listings, and real estate tips that would benefit you as a seller, a buyer, or an investor. For Collaboration and Business inquiries, please use the contact information below: 📩 Email: kasama@kasamasells.com ================================= Disclaimer: We do not accept any liability for any loss or damage which is incurred by you acting or not acting as a result of listening to any of our publications. For all videos on my channel: This information is for general & educational purposes only. Always consult with an attorney, CPA, or financial professional for advice based on your specific situation. Copyright Disclaimer: Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational, or personal use tips the balance in favor of fair use © Kasama Lee Real Estate.