What to consider when deciding to marry the house and date the rate.

Have you heard the saying “Marry the house, date the rate”? I get a lot of questions from clients about what this truly means. Simply put, what this suggests is that you should buy the house that you like no matter what the current interest rate is. You can refinance later since interest rates go up and down. However, is this always the best real estate move? Today I’ll share a few things you have to consider when deciding whether to go this route or not:

1. Know what your budget is. What is your comfort zone? You might be able to afford the payment today on a $500,000 house with $12,000 a year in taxes, but what if the rate doesn’t come down in 12 or 24 months?

“Be prudent in your decisions.”

2. Do not buy a home with a payment that is completely out of your comfort zone. Rates always come down eventually, but will they come down tomorrow or in 30 weeks? We don’t know, so you want to be a little bit prudent in your decisions.

3. Consider if it’s better to save your money for now and then find your dream home later. If you’re renting and it makes sense to buy a house now with the current rate, it may be a good idea to do so. However, if you’re living with a family member rent-free, you may want to consider saving your money for now and finding the house of your dreams later. 

The bottom line is, when you’re in doubt, reach out to a trusted adviser, financial planner, or someone in your circle who you trust with handling money. If you decide to divorce your landlord, marry the house, and date the rate, give me a call or send an email; I’m happy to help you with the process.