With rising mortgage rates and fluctuating home prices, knowing when to buy a home can be tricky. If you find a home that you can see yourself staying in for years to come, you don’t have to delay. The house can be long-term, like a marriage, but the mortgage rate doesn’t have to. This approach is known as “marry the house, date the rate,” and a qualified real estate agent and mortgage lender can help you reap the benefits.
Marry the House But Only Date the Rate
On average, U.S. homeowners live in a home for 13 years. Similar to getting married, the chances are good that you’ll be there for a while. With homes in shorter supply, real estate agents recommend that if you find a home that you love now, you should act on it.
This quarter mortgage rates have risen to the highest they have been in over 20 years. Higher mortgage rates have shifted the mindset of customers when it comes to buying homes. It has discouraged buyers who have the sticker shock of seeing higher interest rates, particularly younger homebuyers who weren’t old enough to have witnessed similar rates. However, rates do not remain the same. With a “date the rate” mindset, you can view the interest rate as a short-term situation. When rates drop, homeowners can refinance their existing mortgage rate for a lower one.
Aside from the possibility of a lower rate in the future, there is also appreciation. The market does change, but there’s a reasonably good chance that your home’s value will rise over time. For example, if you purchase a home for $300k and it appreciates 10% over three years, your home is valued at $30,000 more than the purchase price.
How First Centennial Mortgage Can Help
Mortgage rates will change and the price may go up or down, but your dream home only comes around once in a while. First Centennial Mortgage can help you navigate the current market and find the best mortgage for your situation. Our mortgage loan officers are here to talk about your options. Contact us today to learn more.