DO NOT "Date the Rate"
Two to three years ago everyone starting seeing "Buy the house and date the rate"... my blood boiled.
Why?
Because from 2007-2010 I lived through market devistation and witnessed families and friends loose everything.....All because they owned a home they should not have purchased in the first place.
What the people touting the message of "Buy the house and date the rate" are neglicting to tell you:
1. Your home value may go down after you buy it and guess what...you don't have the equity needed to be approved for a home loan refinance.
2. There is absolutely no guarantee that lower rates will be available to you at a level that makes the COST of refinancing worth going through with it.
3. Yes...there is a large COST associated with refinancing your loan. Great!...you saved $100 a month on your payment....you also paid $15,000 to achieve that "monumental" monthly savings.
4. When you refinance, your first 0-15 years of payments are "interest heavy." When you refinance after 3 years, you restart your "interest heavy" payment schedule all over again.
So....what is my advice?
Lower your expectation on the home you should buy. If you buy a home you can actually afford, you will position yourself for a higher likelyhood success when it comes to receiving the benefits of home ownership.
The home you buy today may not be exaclty what you want, but it may position you for great equity growth and this, in-turn, may get you into your "dream home" down the road.
Patience is key!
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