What rate is too high when you are buying a house?

When rates are rising, it’s normal to worry and to wonder if the time to buy a home has passed you by. It hasn’t. Here’s some mortgage rate history to give you some perspective. In 1981, just one generation ago, borrowers paid 16-18% to buy a home. 

Yes, rates recently rose. But right now, we’re nowhere near levels that should cause you enough concern to give up on your home search.

Even so, rates are not expected to return to 2021 levels in the near future, so if buying a home is your goal, now is the time to get ready to apply…. And if and when rates improve at a later date you can always refinance to a lower rate and payment. 

Buying a home now when rates are higher has many benefits; for instance:

  • Less buyer competition in the marketplace. You are less likely to have to compete with other buyers for the same home.
  • An opportunity to negotiate the price with the seller, as well as, potential settlement cost credits.
  • Buying now can give you a jump start on building home equity with the future possibility of refinancing your home to a lower rate and payment.  Why wait? Imagine if you bought a home 10 years ago and what it would be worth today?

At Star Mortgage we offer home loans that come with a lock-and-shop service option.  Lock & Shop gives you rate security with 90-, 120-, 150- 180-, 270-, and 365-day rate lock options.  If the rates improve as you shop, you can float down to the better rate.

That’ll give you timeto find a home without worrying about interest rate fluctuations. If rates go up, you’re locked at the lower rate. If rates go down, I’ll make sure you get the lower rate once you enter into a purchase contract.

We offer a free consultation so that you can learn the best financing option for your individual needs.  Call us today 508-941-5616

* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.

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