CHOOSING THE RIGHT HOME LOAN
Home buyer, will you date the rate and marry the house?
Date the Rate and Marry the House is a smart home buying strategy
It means that you're buying now and committing to a relationship with the house you love now... and dumping the rate later when rates go down.
You can buy now while no one is looking and prices are low... knowing you'll be able to refinance when rates go down.
Why now?
When COVID hit the US in 2020, the Federal government began buying mortgage-backed securities in an effort to stabilize financial markets and stimulate the economy.
Interest rates dropped to historic lows. The low mortgage rates then caused record numbers of people to buy homes. But a shortage of homes caused prices to shoot up faster than ever.
Many people who wanted to buy a home could not because there were simply too many buyers competing for too few homes.
In early 2022, the government began scaling back their purchase of mortgage-backed securities and eventually stopped buying them altogether. Interest rates went up, causing home prices to go down. Which is where we are right now.
Now people who missed out on buying a home during the pandemic are actually able to do so ...simply because there is less competition and prices are lower
The only downside?
Mortgage rates are higher. That's why more and more buyers are using a smart strategy known as Date the Rate and Marry the House to buy a home now.
Date the Rate and Marry the House simply means you're committing to a relationship with the house you love now ...but you're dumping the rate later when rates go down.
Rates are predicted to go down and refinancing can replace the old, high rate mortgage with a new, low rate mortgage once lower rates are available.
In other words, you can buy right now while no one's looking - knowing you'll be able to refinance when rates go down.
The icing on the cake? Next year you sit back and watch everyone else feed the buying frenzy and drive up the value of your home.
Many of our buyers are using this exact strategy right now instead of waiting for rates to go lower - because once rates go down, more and more people will jump into the pool and it will drive home prices back up.
We hope this information helps you buy the home you've been dreaming about
You may enjoy some of our other home buying special reports
Here's some great news
If you enjoyed this article, then you'd really enjoy The Home Buyer's Kit. Whether you're buying your first home or your 101st, the home buying process can be tricky.
One wrong move in the home buying process and you lose the perfect home to another buyer, pay too much, or get stuck with a house that's falling apart.
The Home Buyer's Kit helps you navigate the buying process. It shows you what steps to take, where to turn, and which pitfalls to avoid. For FREE and with no obligation.
What to do next
If this sounds interesting to you, we've posted a short description of The Home Buyer's Kit here: TheBuyersKit.com. Check it out and let us know.
Karin Aguilar & Brian Smith
Karin and Brian have more than 38 years of combined experience in real estate and mortgages. They founded Showcase Agency, Inc, a real estate and home loan company, in 2017. They live in Irvine with their two daughters.
Languages: English, Spanish
Disclaimers:
1. There is no guarantee that rates will go up or down at any specific date.
2. To refinance into a lower rate, you will have to qualify for the refinance loan at the time of the refinance. Not everyone who applies will qualify or get approved.
3. There is no guarantee that home prices will be driven up next year. But history has shown that home prices always go up over time - so it's safe to say the price of the home you buy now is statistically guaranteed to go up in value over a few short years or less.
4. It looks likely that rates will go down in mid to late 2023 or sometime in 2024. Whenever they do, more buyers will jump into the pool. This always drives home prices up. The timing we've posted is speculative based on our research.
We posted a short description of The Home Buyer's Kit here. While supplies last.
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