Waiting for a 1% lower rate could cost you $20,000-$40,000 more for the house.

One of the biggest mistakes homebuyers make is waiting for mortgage rates to fall before purchasing a home.

I understand the hesitation. A lower interest rate sounds appealing BUT here is what many buyers/borrowers overlook:

You can refinance your mortgage and get a lower rate. But you can't go back in time and buy today's home at yesterday's price.

Indiana Homeowners have built incredible wealth over the last five years. According to the Federal Housing Finance Agency (FHFA), Indiana home values have increased approximately 44% over the last FIVE years. (FHFA.gov)

Let's put that in perspective:

A home that sold for $250,000 five years ago would now be worth roughly...

$360,000

That's an increase of about $110,000 in equity-even before considering the equity by paying down the mortgage!

So What Happens if You Wait??

Many buyers are hoping rates drop another 1% but the problem is, if rates decline significantly, thousands of buyers who have been waiting will likely jump back into the market at the same time.

More Buyers Competing for the same number of homes usually means:

• Higher Home Prices

• Multiple Offer situations

• More Competition

Less Negotiating Power

So while you may save a little on your interest rate, you could end up paying tens of thousands of more for the home iteself.

Here's a Real Example

Suppose a home costs

$350,000 today.

If Indiana home prices appreciated just 4% annually-which is actually much lower than the pace we've seen over the last five years-that same home would cost:

• One year from now: $364,000

• Two years from now: Nearly $379,000

Even mortgage rates fall during that time, you've lost the opportunity to buy at today's prices.

Why Date the Rate?

Mortgage rates change.

Home prices generally trend upward over time because of inflation, limited inventory, and continued demand. Although appreciation can slow or occasionally decline in some markets, long-term homeownership has historically built wealth for many Americans. (Reuters)

If Rates fall later, you can refinance!

Bottom Line

• The house builds wealth

• The interest rate is temporary

That is why you may often hear the saying: Marry the House. Date the Rate.

If you've been waiting for "the perfect rate" let's run some numbers together. You may discover that buying now-and refinancing later-could put you in a much stronger financial position than waiting for prices to climb even higher.