Are you putting off your purchase and waiting for lower rates?

Waiting longer can actually cost you more in the long run—and you deserve the best opportunity to save on their mortgage lending cost and maximum appreciation gains during your ownership! Property values appreciate with each passing year, and waiting an additional year can mean higher list prices, higher interest, and more savings needed to secure financing. If you're a first-time buyer, be sure to read our extra tips, especially for you.

So how much will it cost you to wait? Take a look at the chart below help to compare the costs and payments if you were to take out your loan today versus next year. The property value and interest rate changes shown are based on the MBA and MBS Highway forecasts for Denver County.


Home Price $500,000 $528,739
Mortgage Rate
30-Year Fixed Conventional
(5.26% APR)
(5.637% APR)
Down Payment
20% of Home Price
$100,000 $105,748
Loan Amount $400,000 $422,991
Monthly Payment
Principal + Interest
$2,209 $2,435

By waiting another year, you'll spend:

  • $5,748 Larger Down Payment

  • $226 More Per Monthly Payment

  • $22,991 Larger Loan

In addition to a larger down payment, higher monthly payment, and larger loan financing, you may need more than 20% down to maintain your current loan-to-value ratio.


With interest rates rising, it’s important to remember that a slightly higher rate shouldn’t discourage you from buying a home when you’re ready. You can always refinance your loan later on as rates fluctuate, but you can’t change the price you purchased at—and home values continue to appreciate in Denver and beyond. 


Are there options to offset higher rates?

Consider negotiating with the seller to buy down the interest rate on your loan! It’s not only helpful to buyers but allows the seller to maintain the full list price of their home while reducing your interest rate. Check out this example of how a seller could agree to or offer a concession towards buying down your interest rate versus reducing the list price of their home—you’ll see that this is beneficial for both sides, and is a great way to maintain home values and present an attractive offer to the seller while making your monthly payment more affordable.

Example Assumes:

$600,000 List Price
20% Down Payment
$480,000 Loan Amount

Mortgage Rate
30-Year Fixed Conventional
(6.03% APR)
(6.03% APR)
(5.48% APR)
Monthly Payment
Principal + Interest
$2,876 $2,751
($125/month savings)
($225/month savings)

Estimate your payment with list prices, interest rates, and downpayment amounts to see how your potential savings or expenses could change, and contact us for local lender recommendations!