Though out life, a person experiences a multitude of different occasions when it seems like everyone knows more than them:
· Teetering away from the wall while dad holds his arms promising to not let you fall
· Sounding out words in the level one reader as mom quietly points to the syllable breaks
· Proving the congruent angles in a geometry equation while the instructor looks over your shoulder
· Assigning seats for a wedding party as your besties tells you who will and won’t get along at the table
And yet, with experience and instruction, we succeed. We reach our potential and meet a goal.
“Every stage of life is unique. At any age and stage of life there are obstacles and opportunities, trials and triumphs. Never allow the negative bring to you to sudden halt. Make the most of the positive opportunities and stay positive,” inspires Lailah Gifty Akita, international speaker and author of The Alphabet of Success.
Buying a home is no different. Recognizing what one doesn’t know, having a willingness to ask questions, and being open to seek help from experts in the field, are ways to assure success.
A sticking point of understanding for many buyers is related to the interest rate. Not too long ago, rates were in the 3s. Then, just when we accepted 4s and 5s may be here to stay awhile, the Fed raised the bar again. Many buyers jumped ship siting a lack of willingness to pay such a high rate which cut into their buying power or increased their monthly comfort. Yet, those same folks are willing to pay rent to a landlord (ahem, that’s effectively 100% interest), sign a note for 9% on a new-to-them car and have long since accepted 22% on their revolving credit cards.
I’m here to say, I get it!! What once was felt good, felt like a reward and certainly felt like building towards a future, feels too risky right now. However, not reaching, not growing, is leaving wealth behind on your taxes, on your future options and on potential equity.
Mortgage Interest rate: An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of loan period. This portion of your payment, in addition to property taxes, may be deductible. The mortgage interest deduction is a tax deduction for mortgage interest paid on the first $750,000 of mortgage debt. Homeowners who bought houses before December 16, 2017, can deduct interest on the first $1 million of the mortgage. Claiming the mortgage interest deduction requires itemizing on your tax return.
Interest rates are re-financeable: A refinance occurs when the terms of an existing loan, such as interest rates, payment schedules, or other terms, are revised. Borrowers tend to refinance when interest rates fall. The benefits of refinancing are for everyone, like: Provides you with a better deal on your mortgage payment. This might include a better interest rate, no mortgage insurance or a lower one, and paying off the looming balloon payment. Moreover, it allows easy future planning by turning an adjustable loan rate into a fixed-rate loan.
Home prices continue to rise: The Aug issue of Forbes Magazine reported that the median existing-home sales price broke through $400,000 for the first time in 2023, hitting $410,200—the second-highest price ever recorded—and is now poised to surpass the June 2022 all-time high of $413,800, according to the National Association of Realtors (NAR).
These are the days that playing it safe, not reaching for the next opportunity is working against your long-potential and goals.