If you are shopping for a home at a time when interest rates are higher than what is ideal, you probably have done some math. You may have noticed that if interest rates were lower, you could save hundreds of dollars a month. This could leave you wondering what the right move is. Should you buy a home now, or should you wait for rates to drop again?

Pros of Waiting for Interest Rates to Drop

The advantage of waiting for rates to drop is obvious; your mortgage will be much more affordable.

If you wait to purchase a home, you can look forward to a lower monthly payment, or you could simply buy more home. It depends on your situation and goals.

Plus, while you are waiting, you will have more time to save up for a higher down payment. Doing so could further reduce your interest rate and monthly payments, and maybe get you out of paying for private mortgage insurance (PMI).

Cons of Waiting for Interest Rates to Drop

Although waiting for rates to drop presents some significant financial advantages, there are a couple of reasons to think about buying a home now instead.

For one thing, you will start building up equity in a home sooner. As home prices rise, that investment will begin accruing additional value.

For another thing, you will be living in your own home! You only live once, and it makes sense to spend every minute of that life the way you want if you have the option. You can make more money, but you cannot make more time. There is also sometimes no saying how soon interest rates might come back down. If you decide to wait, you could end up waiting longer than you expected.

Plus, you do not need to be stuck with a higher interest rate forever. Once rates come down in the future, you can refinance to a lower rate and lock that in for the rest of your mortgage.

Buy a Home with Competitive Interest Rates

Ultimately, you will need to decide for yourself whether to buy a home when interest rates are high, or wait for them to come down. Either way, Grandview Lending can connect you with competitive rates. If you want to buy a home now or refinance, please give us a call at (317) 255-0062.