Sometimes if You Wait too Long, It's too Late

Sometimes if you wait too long, it's too late

- Sarah Strohmeyer

I think we all know instinctively this quote is true….but so is the proverb "look before you leap" written by Aesop around 500 B.C. These two quotes may seem to contradict each other, but in reality, they go together perfectly.

I frequently hear buyers today say that they are going to wait for interest rates to come down before they “leap” into a new home. This is understandable, but we need to also remember the first quote that by waiting too long you could be too late to enjoy the benefits.

Here’s what I mean. Interest rates have a direct impact on your monthly mortgage payment, but so does the price that you need to pay to

buy that house. While you’re waiting for interest rates to drop, the price of your dream home is increasing. By waiting too long, you might very well eliminate any benefits of a lower interest rate by borrowing more money to purchase your dream home.

It does seem likely mortgage interest rates will drift lower in the future, but no one believes that they will get back to the ultra-low rates of a few years ago. Likewise, it is highly probable that home prices will continue to rise at a strong pace.

Fortunately, you can always refinance your mortgage if/ when rates come down, but we can’t reverse higher home prices.

Jonathan R. Krause, Gambino Realtors

815.282.2222 | www.GoGambino.com