• Emjae Esta

Thinking of waiting to buy? That might not be a good idea.

Experts aren’t predicting home prices to drop even with interest rates rising. So, what does that mean for you as a home buyer? Well good news is you can “marry the house and date the rate” all that means is you can get the rates now and lock in the house and when/if rates change later down the road you just refinance and get better rates. While you may be thinking interest rates are currently high, they are still at a historical low. Interest rates haven’t reached 7.77% which has been the US average since 1971.

Experts don’t predict a housing market shift mainly because the sole reason for home prices is that there aren’t enough homes, even with new construction homes being built they can’t produce fast enough to meet demands. Experts have noted that even with higher rates the home prices aren’t dropping. So waiting to buy just means the same prices or higher prices with the potential to have higher rates.


Let’s think about it, if the average home price is around $450,000 and you obtain a loan after putting 20% with 5.67% interest your monthly loan payment will be around $2,000 (depending on credit, down payment and more) if you wait and interest rates go up to 7% or higher which has been the average that same house will now be around $2,400 a month or even higher. As previously mentioned, if rates go down you always have the ability to refinance and get the better rates.

Refinancing is a simple process; you send the same proof of income documents as you did to obtain the previous loan and if you use the same lender the process is much easier. The process goes more smoothly because they already know the home you’ll be financing and the taxes and much more.

If you are in a rental, you are essentially paying someone else’s mortgage with extra fees and at the end of lease you have nothing to show for it. So why pay for someone else’s mortgage when you can be paying your own. If you’re paying rent at $2,200 a month at the end of the year you’ve spent $26,400 on someone else’s assets. Buying your own home can help save you money every year and give you your own place to call home.

If you have any questions about the lending process we have a list of lenders we have worked with that we can send you, or you’re free to research lenders on your own.


If you want to see what kind of home we can get you into please contact us!


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