First time home buyer with interest rates at 6%
When can I see rates go down? I’m closing in on a home in 30days an wondering if it’s worth paying a high mortgage payment with interest of 6 percent or higher , I was told to hold at 6 an then refinance once it drops. I’m new to this Any ideas be welcomed??I’m only person bring in income and have a family of 4 so money is tight… Thank you
You can buy the rate down using your own money or see if the seller will offer a seller contribution. That will allows you to buy the rate down into a lower rate low 5's or High 4's. Keep in mind a refinance is "Not" always an option. Sometimes it takes awhile for a home to grow enough in equity to be able to refinance. You also have to consider this inflated market that in many ares is getting ready to adjust down.
Rates will more than likely balance out in or around 2024 but the lieklihood of 2% and 3% will be a thing of the past for awhile. Do you have any other banks or lenders offering you a second quote? Are you comparing rates and are you paying points and what are the hard costs/origination fee's? That is also important and you have 30 days so get a second opinion and quote!
They'll go up before they go down.
I think owning and paying a mortgage is better than renting for two reasons:
1.) rent is 100% interest.
2.) you're creating wealth for your family each time you make one of those payments, interest rate aside. Each month you get principle pay-down, which is like a savings account over time. In theory, the market value could drop but this is seriously unlikely, especially if you hold for even just a few years. The bank will never lend more than an asset is worth to start with anyway.
As a realtor, I can't give you advice when you're working with your own realtor, but others here have mentioned what you can do with rate buydowns, situationally.
Good luck, you got this!
