Marry the House, Date Your Rate, Divorce Your Landlord
We have been in a heavy sellers-market for the past few years, here's what to look for in the changing marketing.
With high sales prices, people paying over asking price, and cash offers everywhere has made it a lot tougher for financing homes. But, the increase in interest rates has scared many potential homebuyers out of the market so the sellers are having a harder time finding offers.
This has led to homes sitting on the market longer and sellers now bending over backwards to sell their homes. This means that this is a great time to purchase a home, as buyers have more leverage than they have in years! The only problem is that interest rates are the highest in the last 14 years. So we have got a phrase that we like to say: “Marry the house, date the rate, and divorce your landlord”.
So the main takeaway is to get the house now since you do not want to lose that home of your dreams. You don't want to regret not making an offer on your forever home. But more importantly, the interest rate you have now does not have to be the interest rate you have for the life of the mortgage.
Interest rates may be high right now but with every recession always has a decrease in interest rates. If you look back to the 2008 recession, we had interest rates dropped from the 6% range to the 3% range in 2012. This trend has been the same for the last 50 years. And with seller concessions and price reductions all over, we can use that price reduction to buy the interest rate down to the 5%-4% range. Then in 1-2 years later when the interest rates come back down, refinance the home to get the home you want along with the interest rate you want.
Why would anyone want to increase their landlords home equity when you can start building your own equity? Especially with the insane increase in equity in the greater Tampa Bay area, it's a no-brainer. With year over year average increases over 10 percent, it’s unsustainable to keep paying more for a place to live that is not even yours. Divorce your rent because it is one of your best steps to financial freedom.
If you want to learn more about the mortgage process or just need some help regarding mortgage financing, give us a call at
727-376-6900, or use the form below to let us know a little more about your circumstances.
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