Pros & Cons of Buying with High Rates

Dated: October 12 2023

Views: 26

Pros and Cons of Buying at Higher Rates

article-content

“Marry the house, date the rate” is a common phrase in the housing industry, especially since mortgage rates have risen throughout 2023. But it’s not just a phrase; it’s a strategy too.

It’s simple: Focus on finding your dream home — the one you want to live in for the long haul — and treat today’s higher rates as a temporary path to get there. Then, you can commit to refinancing once interest rates drop.

While this is a logical approach for some homebuyers, it’s not the right move for everyone. Consider these pros and cons before using the strategy.

Pros
Typically, the biggest advantage of the “marry the house, date the rate” approach is that you get to buy the home you want now instead of waiting months or even years for rates to drop. If you’re ready to settle down, this might be the only goal that matters.

You may also see less competition from other buyers (due to higher interest rates), and becoming a homeowner sooner will help you start building equity in the home.

Cons
One of the main downsides is that you don’t know when rates will drop, so you could be stuck with your higher rate (and payment) for a while.

And refinancing isn’t free. The average cost to refinance is about $2,375 plus taxes — usually 2% to 5% of the loan principal, like closing costs. If there’s any chance you may not stay in the home long term, it might not feel worth it.

If you’re ready to find your dream home — or if you need help deciding if now’s the right time to buy — reach out so we can discuss your situation.

Blog author image

Milton Koster

Milt, originally from The Pocono Mountains of Pennsylvania, (East Stroudsburg to be exact), moved to the Treasure Coast where he lives with his wife Debbie. In 1985, Milt started the business Milton....

Latest Blog Posts

Buyers Should Reconsider "Timing" the Market

Buyers Should Reconsider ‘Timing’ the MarketBy Melissa Dittmann TraceyFor the most part, mortgage rates have stabilized — and delaying a purchase could end up backfiring as home

Read More

Pros & Cons of Buying with High Rates

Pros and Cons of Buying at Higher Rates“Marry the house, date the rate” is a common phrase in the housing industry, especially since mortgage rates have risen throughout 2023. But it

Read More

A Homebuyer's Guide to Using Gift Money

A Homebuyer's Guide to Using Gift MoneyComing up with a down payment can feel like quite a hurdle.For millennials, who are currently the largest cohort of homebuyers, getting help with the down

Read More

Homebuyer: Act Now or Wait it out?

Homebuying: Act now or wait it out?The housing market is always changing, so it can be hard to determine exactly when to buy — and when to wait it out.What if home prices or interest rates?

Read More