Marry the House and Date the Rate

For many buyers, a low interest rate is a major consideration when looking to buy a condo, townhouse or single family home. Especially now since we have seen interest rates in the low 2% range. The basic thinking behind "Marry the House and Date the Rate" is that buyers should not allow interest rates from detering them from purchasing your dream home, because rates are likely to dip in the future and this will allow you to refinance to a lower interest rate. The typical mortgage term can last up to 30 years or more so it’s tough to think you may be stuck with anything less than the lowest rate possible for an extended period of time. 

Most experts agree that rates will eventually come down, although we may not see rates in the 2% range for a long time. Buyers need to keep in mind that they may be dating the interest rate longer than they’d like to. There’s no way to know when mortgage rates will level out or trend lower.

There is also the fact that Prices are dropping, and home buyers have more room to haggle, as the local markets adjust to higher interest rates.

Just remember, committing to purchase a property doesn't mean you have to commit to the interest rate forever. Homeowners always look for better financing opportunities and make the move when the time is right. Some Lenders allow you to lock in a rate now, and if the interest rate drops before closing, you can take advantage of the lower rate. Other Lenders will let you close now, and if the interest rate drops within a stated number of years, you can refinance at greatly reduced costs.

The bottom line is that you should keep looking for that Dream Home, and consider your options if you find it.