The number one mistake homeowners make:
letting interest rates control their next move…
Rates today are higher than what many of us have grown accustomed to, but they’re still below historical average. January 2021 had the lowest interest rates ever on record, and it’s highly unlikely we’ll see those again anytime soon.
So, my advice to people wanting to move, but scared of losing their 3% mortgage:
Lock in today’s rates!
Think back to all the times you’ve said, “I wish I had bought _______ five years ago.” The same logic applies now. Interest rates are likely to increase, and the cost of homes has always gone up. And if we ever see historic lows again, refinancing is always an option!
Yes, paying a mortgage might be more expensive than renting right now, but each payment builds equity and allows you to benefit from the property’s appreciation.
Consider this: if you put a down payment on a $350,000 home in July 2022, your interest rate would have been around 5.5%, nearly double what it was the year before (2.87%). Despite the higher rate, you’d still be in a better position than waiting to buy the same home today, which is now worth almost $400,000 with an interest rate around 7.5%.
There’s no shame in making adjustments—refinancing exists for a reason. But missing out on building equity because you’re waiting for the “perfect” moment is a missed opportunity.
If you have any questions or need guidance, don’t hesitate to reach out.