While it may seem counterintuitive, there can actually be quite a few benefits to buying a home when mortgage rates are higher:
- Less Competition: Higher mortgage rates often result in fewer buyers in the market, reducing competition and possibly leading to better deals on homes.
- Faster Equity Building: Higher rates can deter rapid price increases, stabilizing the market and allowing homeowners to build equity more steadily.
- Potential for Refinancing: If rates drop in the future, homeowners have the opportunity to refinance their mortgage at a lower rate, reducing their monthly payments and overall interest costs.
What to do when you want to buy a home and rates are high:
We’re still seeing homeowners pursue their home-buying dream amid higher interest rates. If you’re in that boat, here are a couple practical ways you can best prepare for the home-buying process:
- Improve Your Credit Score: A higher credit score can qualify you for better rates. Here are a few tips on how to improve your credit.
- Refinance Later: If rates drop in the future, refinance to secure a lower rate.
- Start Home-buying Conversations NOW. It’s important to just start the conversation with a mortgage lender. Get a realistic perspective of what you can afford, and ASK QUESTIONS.
If you have any questions about the buying (or refinancing) process, our team is here to help with a zero-pressure-policy. It’d be our pleasure to share everything we know and give you the best advice we possibly can. We’re United Faith Mortgage – and we like to say that we have a Direct Lender Advantage. Our company gets to use its own money and make its own decisions within its own walls. There’s no middle man. For you, this often means shorter turnarounds and a better rate… which can mean paying significantly less each month… whether you’re refinancing or buying a new home.
Just give us a call or fill out a form to get started. We look forward to meeting you.