Here is a smart mortgage strategy for buying a home in 2023

If you’ve been on the fence about buying a home and you’re thinking about potentially getting prequalified. Here are some things you should give some consideration to…

You might be telling yourself “I don’t want to buy a home right now because interest rates are kind of high.”  The question becomes in relation to what? Then the answer is you are absolutely correct interest rates are higher now today than they were a few years ago due to inflation. A better approach may be to view the home-buying project through the lens of a payment alignment with your monthly budget. Nobody is getting really great interest rates right now. Interest rates are relative to what the market conditions support, which right now is in the mid-60s.

As a result, buying a home with a fixed-rate mortgage does the following:

  • drives long-term affordability
  • supports a healthy budget
  • it’s safe- payments are fixed

Rates can and will change in the future- which may line you up for a big payment reduction. A 1% rate reduction is equivalent to a $300 reduction in your mortgage payment (depending on the amount financed) and could be used to help drive your wealth if you’re saving that money in the future or plan to be. Such

The takeaway- these inflated interest rates are not sustainable and they absolutely drive purchasing power. If you already are a homeowner you will get a shot of home equity as a result of home sales activity when rates drop. If you’re waiting to buy a home for rates to come down that might be more challenging particularly because there’s not a big supply of homes in the market. Lower loan rates drive and spur spending increasing competition. You don’t want to be up against competition for a home if you don’t otherwise have to be.
A good mortgage lender will help you identify opportunities to refinance for little or no cost. You want a lender interested in working with you and your family long-term vs a loan officer who is hard to reach and doesn’t follow up.

Looking to buy a home with a quality lender? Get a no-cost rate quote now!



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