Maybe you're waiting to save up a little more. Maybe you're waiting for the “right time.” Waiting can feel like the safe choice, because nothing changes while you think it over.
But a lot can change. Lot prices go up, the best homesites get picked first, and every month of rent is money you won't see again. Here's a simple look at what waiting can really cost, and why owning your land sooner can save you more than you might expect.
A Few Key Terms to Know
· Lot Price: The price of the homesite you're buying.
· Loan Amount (Principal): The amount you finance to buy your lot, after your down payment. When the lot price goes up, the amount you finance usually goes up with it.
· Fixed Rate: An interest rate that stays the same for the life of your loan, so your monthly payment never changes.
· Owner Financing: You buy your land directly from Cayetano and make your payments to us. No banks in the middle, and no credit check.
· Open Contract: A loan you can pay off early, at any time, without any penalties.
Lot Prices Don't Wait for You
Land in Texas is in high demand. As new roads, schools and businesses move closer to a community, the homesites around them become more valuable. And once a phase sells out, those lots are gone. The corner lot or the bigger homesite you had your eye on may not be there when you're ready.
To show what that means, the examples below assume lot prices go up about 5% a year. That is just an example, not a promise. Prices change by community, but over time they tend to go up, not down.
A Higher Price Means a Higher Monthly Payment
Here's what happens to the same homesite if you wait 3 years to buy it, using a 9.9% fixed interest rate and a 20-year term.
Example only. Assumes lot prices rise about 5% a year. Payments shown are principal and interest, and do not include property taxes, escrow or other fees.
What This Means for You
Same lot, bigger payment. On a $100,000 loan, waiting 3 years could add about $151 to your monthly payment, for the very same lot.
It adds up. That extra amount is paid every month for the entirety of your loan.
Lock it in. Buying sooner locks in today's price and your fixed rate, so your payment stays the same from the first month to the last.
Other Costs Don't Wait Either
Moving your home costs more every year. If you're bringing a mobile home, the cost to move and set it up (transport, permits, leveling, tie-downs and skirting) depends on fuel and labor prices, and those keep going up. Moving sooner usually costs less than moving later.
Rent is money you don't get back. While you wait, you're probably still paying rent. At $1,200 a month, 3 years of waiting is $43,200 in rent, with nothing to show for it at the end.
Your monthly payment on a Cayetano lot goes toward something that's yours: land you can build on, put your home on, and pass down to your family. Stop paying rent. Own instead!
Waiting on Your Credit? You Don't Have To
A lot of families wait because a bank told them no, or because they're worried about their credit. With Cayetano's owner financing, you buy your land directly from us. There's no credit check and no bank to convince, just a low down payment and a monthly payment that fits your budget.
And because every Cayetano loan is an open contract, you can always pay it off early with no penalties. Starting sooner means you finish sooner, too.
Start Building Your Future Today
Taking your time to choose the right homesite is smart. Waiting for prices to come down usually isn't. The sooner you own your land, the sooner your payments start working for you instead of your landlord.
At Cayetano Development, we're proud to help hardworking Texans take the first step toward owning land with low down payments, budget-friendly monthly payments, and straightforward owner financing. No credit? No problem!
Ready to see what's available? Contact a Cayetano Sales Rep or visit www.CayetanoDevelopment.com.
Cayetano Development is a Registered Mortgage Loan Originator (RMLO), NMLS # 1667528. Rates, terms, prices and payment amounts shown are examples only and may vary by community and buyer. Future lot prices are not guaranteed.
