@natale_realtors Marry the House, Date the Rate is BS This may be the worst advice I’m seeing in the real estate industry right now. While fundamentally true, you can lock in a house now and if rates fall, you could refinance. Somebody should only be looking to buy a home right now if 1. They can afford it. 2. Their job is secure and 3. The home fits their lifestyle for at least the next 5-7 years. Here’s the two things that phrase doesn’t factor in: Rates going up further. Yes, you may be thankful the rate you have will be better, however, if you were planning on the payment coming down, it won’t be if rates go up further and stay elevated. The value not dropping. If the value drops significantly, it’ll be impossible to refinance since the loan will be underwater. While I think prices will be insulated to anything more than a correction (that may have already happened), if prices fall significantly, even if rates fall, there won’t be a chance to refinance since the equity you could have may have dried up. It’s important to know the advice you are hearing is sound. While on the surface, this phrase sounds great, it’s not the blank advice many make it out to be and it shouldn’t be touted from real estate industry leaders as a solution to higher rates. If you need help navigating the current market in your neighborhood, don’t hesitate to contact us. We’re here to help. #homebuying #homebuyingtips #realtors #realtortips ♬ original sound – Natale Realtors
Marry the House, Date the Rate is BS
This may be the worst advice I’m seeing in the real estate industry right now. While fundamentally true, you can lock in a house now and if rates fall, you could refinance. Somebody should only be looking to buy a home right now if 1. They can afford it. 2. Their job is secure and 3. The home fits their lifestyle for at least the next 5-7 years. Here’s the two things that phrase doesn’t factor in:
Rates going up further. Yes, you may be thankful the rate you have will be better, however, if you were planning on the payment coming down, it won’t be if rates go up further and stay elevated.
The value not dropping. If the value drops significantly, it’ll be impossible to refinance since the loan will be underwater. While I think prices will be insulated to anything more than a correction (that may have already happened), if prices fall significantly, even if rates fall, there won’t be a chance to refinance since the equity you could have may have dried up.
It’s important to know the advice you are hearing is sound. While on the surface, this phrase sounds great, it’s not the blank advice many make it out to be and it shouldn’t be touted from real estate industry leaders as a solution to higher rates.
If you need help navigating the current market in your neighborhood, don’t hesitate to contact us. We’re here to help.