Your Priorities are More Important Than Your Mortgage Rate

Mortgage Rates Are Rising, But Your Needs Still Matter Most

Mortgage rates have been rising in recent months, and it’s natural to wonder if this is a good time to buy a home. After all, higher mortgage rates mean higher monthly payments. But it’s important to remember that your needs matter more than today’s mortgage rates.

If you’re in a position to buy a home, and you’ve found a home that meets your needs, don’t let rising mortgage rates stop you. There are a few things you can do to offset the higher monthly payments, such as putting a larger down payment or getting a shorter-term mortgage.

Of course, you’ll also want to make sure that you can afford the monthly payments even if mortgage rates continue to rise. But if you’ve done your homework and you’re confident that you can afford the payments, don’t let rising mortgage rates hold you back.

Here are a few things to keep in mind when you’re considering buying a home in a rising-rate environment:

• Do your research. Before you start shopping for a home, make sure you understand the different types of mortgages available and how they work. You should also get pre-approved for a mortgage so you know how much you can afford.
• Be prepared to compromise. If you’re set on buying a certain type of home or in a certain location, you may have to be prepared to compromise on your price or other terms.
• Don’t wait too long. If you’re thinking about buying a home, don’t wait too long. Rising mortgage rates could make it more difficult to afford a home in the future.

Buying a home is a big decision, but it doesn’t have to be overwhelming. If you do your research and plan ahead, you can still buy a home even in a rising-rate environment.

Here are some additional tips for buyers in a rising-rate environment:

• Consider a shorter-term mortgage. A shorter-term mortgage will have higher monthly payments, but you’ll pay less interest in the long run.
• Put down a larger down payment. A larger down payment will lower your monthly payments and your risk of default.
• Shop around for the best mortgage rate. Rates can vary from lender to lender, so it’s important to shop around and compare rates.
• Be prepared to act quickly. If you find a home you love, be prepared to act quickly. Homes are selling quickly in this market, and you don’t want to miss out on your dream home.

Buying a home in a rising-rate environment can be challenging, but it’s not impossible. If you’re prepared and you’re willing to work hard, you can still find a home that meets your needs and your budget. Feel free to reach out to me with any questions you might have, the Tate Advisory Group is here to help.