• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Sheila Smith Real Estate Group

Sheila Smith Real Estate Group

Homes in Boise, Meridian, Eagle, Nampa, Caldwell, and greater Idaho areas.

  • Treasure Valley
    • Boise
    • Meridian
    • Eagle
    • Nampa
    • Caldwell
  • Buy
    • Our Listings
    • Business Directory
  • Sell
    • Contact Us
    • Business Directory
  • Staging
    • Show Your Home’s Potential
    • Before and After
    • Behind the Scenes
    • Finished Stages
  • News
    • Open Houses
    • New Listings
    • Articles
    • Homeowner Tips
  • About
    • Reviews
    • Awards
    • Team
  • Contact
    • (208) 254-2090
    • Email Us
    • Facebook
    • Instagram
    • Linked In

The Cost of a Mortgage and Ability to Buy

February 22, 2012

I have people ask me whether or not is a good time to buy a home.  What I have been talking about lately is the cost of owning a home and how interest effects payments and total money out of pocket.  Mortgages are fairly expensive.  You are spreading out the cost of a house over 30 years and the resulting amount you pay to the bank is significant.  But right now with interest rates the way they are you could be costing yourself thousands by waiting to buy.

Let’s look at an example of a mortgage.  If you were to buy a $200,000 home right now you would be paying $926 dollars in principle and interest payments for a 30-year loan at 3.75%.  Total amount you would pay back to the bank would be the $200,000 owed and another $133,443 dollars in interest.  Now say you wait until next year and the rates go up to 5.5%.  Now you are paying $1,135 dollars in principle and interest payments for a 30-year loan.  Total amount you would pay back to the bank would be the $200,000 owed and another $208,808 dollars in interest.  That is an extra $75,365 dollars!!! Your interest went up less than 2%.

The other thing to consider is how much more of a house you can buy with the extra payment.  Looking at the example above; if you take the payment of $926 dollars on 5.5% interest for 30 years you are only able to buy a $163,088 house!!  By buying when interest rates are low you can buy a better house with less money out of your pocket in the long run.  The other factor to consider is that prices are still just recovering now so you are able to get houses on sale and deals that may not be here a year from now.

Happy house hunting!

 

Craig Soelberg

Sheila Smith Real Estate Group

RE/MAX Capital City

Filed Under: Articles

Primary Sidebar

  • Email
  • Facebook
  • Instagram
  • LinkedIn
  • Phone
  • 1420 W Washington St
    Boise, ID 83702
  • (208) 254-2090
  • Email Us

Find A Home

1990 E Townline Way $1,125,000

1990 E Townline Way Meridian, Idaho

4 Beds 4 Baths 3,072 SqFt 0.385 Acres

1077 E Crest Ridge Dr $765,900

1077 E Crest Ridge Dr Meridian, Idaho

3 Beds 3 Baths 2,255 SqFt 0.18 Acres

TBD S Roosevelt St $725,000

TBD S Roosevelt St Boise, Idaho

4 Beds 3 Baths 1,942 SqFt 0.153 Acres

TBD S Eagleson Rd $715,000

TBD S Eagleson Rd Boise, Idaho

3 Beds 3 Baths 2,146 SqFt 0.172 Acres

18236 N Highfield Way $659,000

18236 N Highfield Way Boise, Idaho

4 Beds 3 Baths 2,061 SqFt 0.204 Acres

12743 N 12th Ave $574,900

12743 N 12th Ave Boise, Idaho

3 Beds 2 Baths 1,702 SqFt 0.128 Acres

1225 S Vermont Ave $559,900

1225 S Vermont Ave Boise, Idaho

2 Beds 3 Baths 988 SqFt 0.07 Acres

2548 N 18th East St $529,900

2548 N 18th East St Mountain Home, Idaho

3 Beds 2 Baths 3,058 SqFt 4.6 Acres

4672 N Futurity Ave $529,900

4672 N Futurity Ave Boise, Idaho

3 Beds 3 Baths 1,754 SqFt 0.29 Acres

4875 N Glenrock Ave $525,000

4875 N Glenrock Ave Meridian, Idaho

3 Beds 2 Baths 1,650 SqFt 0.251 Acres

Recent Posts

  • September Market Stats
  • July Market Report
  • June Market Report
  • March Market Report
  • February Market Stats
  • November Market Report
  • October Market Stats
  • A Look at the Fall Housing Market
  • ‘Signs of normalizing’: Data shows lower home prices in Boise in June…
  • Reduce Your Heating & Cooling!

Footer

  • Boise
  • Meridian
  • Eagle
  • Nampa
  • Caldwell

Sheila Smith Real Estate Group
1420 W Washington St.
Boise, ID 83702

(208) 254-2090

Copyright © 2025
Website by Dog & Casper

Privacy Policy • Terms of Service • Contact