If you’ve been paying attention to real estate lately, you may have heard the phrase “Marry the House, Date the Rate.” But what does it really mean, and should you follow this advice when buying a home? Let’s break it down:
Key notes
- Mary the House – This simply means finding a home you love
- Once you’ve found the house, you “date” the mortgage rate
- When interest rates drop, you “break up” with your current rate and refinance into a better one
1. Marry the House
This simply means finding a home you love—a place with qualities that will make you happy for years to come. This is the long-term relationship part of the equation, as you’re committing to this home for the foreseeable future.
2. Date the Rate
Once you’ve found the house, you “date” the mortgage rate. You lock in the best available rate when you purchase the home, even if it’s higher than you’d like. Think of this as a temporary arrangement, knowing that you can improve it later.
3. Break Up with the Rate
When interest rates drop, you “break up” with your current rate and refinance into a better one. The idea is that you’re only “dating” this rate until a better option comes along.
So, Is This a Good Idea?
In my opinion, yes. Real estate is a long-term investment. Even if you’re stuck with a higher interest rate at first, real estate appreciates over time. Investors are still buying homes despite higher rates because they understand that the value of the home will increase. So, “Marry the House, Date the Rate” makes sense if you’re looking at the bigger picture. When rates drop, you can refinance and enjoy the benefits of both a great home and a better rate!d WordPress functionality and provide more options to their clients.