Buy Now Refinance Later – Why Buying a Home Now Could Be a Smart Move, Even with Higher Rates
It’s no secret—interest rates have climbed recently, and many potential buyers are holding off, hoping for rates to dip. But, despite the higher rates, buying a home now might be a better decision than you think. It’s time to Buy Now Refinance Later. Here’s why:
1. Building Equity Sooner
The longer you wait to buy, the more money you’re likely spending on rent without building any equity. Homeownership lets you start putting your money toward an asset that appreciates over time. Even if rates are higher today, buying now means you’re starting to build equity sooner rather than waiting for the “perfect” rate. Interest rates fluctuate, you can always refinance later.
2. Rates Are Temporary, But Prices Are Rising
Historically, real estate prices tend to rise over time, even with periodic dips. Holding off may mean facing even higher home prices when you do decide to buy. The cost of waiting can exceed the cost of slightly higher interest payments now. And remember, you can refinance your mortgage later if rates decrease. Now is a great time to lock in the home you want today and adjust your rate when the opportunity arises.
3. Less Competition
With some buyers stepping back due to rates, there’s less competition in the market. This could mean fewer bidding wars, more negotiating power, and even some sellers more willing to make concessions. You might find yourself able to purchase a home in your preferred neighborhood without the intense competition seen during lower-rate markets.
Buy Now Refinance Later
4. Tax Advantages and Predictable Payments
Owning a home provides certain tax benefits, such as mortgage interest deductions, which can offset some of the costs associated with a higher rate. Plus, unlike rent, which can increase year-over-year, a fixed-rate mortgage gives you predictable payments and greater control over your monthly housing expenses.
5. Locking in Your Future
Buying a home now means you’re taking control of your financial future. With the flexibility to refinance when rates drop, you’re positioning yourself to benefit from both long-term property value growth and potential rate savings down the road.
In short, higher rates don’t have to mean “wait.” They could be your opportunity to find a home with less competition and start building equity immediately. Reach out if you’re curious about your options—it could be the perfect time to invest in your future!
Buy Now Refinance Later
Here is a link to some of the types of home loans I finance as a Broker: Types of Loans
Contact me today to learn more:
Jeff Markell NMLS# 224196
Grandpa Mortgage – U.S. Air Force Veteran
Reverse Mortgages – Mortgage Broker In OC
(714) 614-4040
jeff@empirehomeloans.com
Empire Home Loans, Inc. NMLS# 1839243
Serving all of California
www.mortgagebrokerinoc.com
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