*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Is it smart to buy a new home now with rates rising? Or is it going to be more beneficial to wait for rates to go down? These seem to be two of the biggest questions of the year so far.
The honest answer to those questions is that as loan officers, we can give you our best educated guess, but nobody knows for 100% certainty where the market will be in a year or two.
One thing that you can be sure of though, is that there are cycles throughout history that show us that high rates are only temporary.
There are a few different ways to combat rising interest interest rates. Below are two different general mindsets that depending on the situation, could both be good moves to make.
The first, is the "I need to get into a home and it's better to buy now and refinance later." way of thinking. This is one of the more common mindsets to have. Right now, experts are expecting rates to continue to climb in the near future. If you're in a situation where you can afford to buy now, it might not be a bad idea. Getting locked into a rate is important, and refinancing for a lower rate later is always an option. Worst case, rates continue to climb longer than expected, and you're locked into a rate that now looks more reasonable than it did before.
Next is the "I'll wait it out" mindset. This may also be a good mindset to have depending on the situation. Although it does come with a bit more risk, banking on rates decreasing as the financing cycle predicts could benefit you more in the long run. If all goes according to the way history would suggest, you could be able to lock into a lower rate sooner than you might realize. The downside is that nobody can say for certainty that rates will follow the same pattern that we're used to seeing.
Either of these mindsets can be beneficial depending on your current situation. Give me a call and lets chat about what might be the best move to make for you.
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Brayden Ramsay NMLS #1997195
Momentum Loans NMLS # 1606597
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