Home Buying in a Higher-Rate Environment (or Yes, You Can Still Make Home Happen!)

Higher interest rates don't have to put your plans to buy a home on hold. Here are a few tips to help you still make home happen, even in today's rate environment.

1. Make the right decision for you - While renting offers flexibility, homeownership allows you to build equity long-term. Rental payments typically increase over time whereas the principal and interest payments on fixed rate mortgages remain consistent until the loan is paid off. There are also additional costs associated with owning a home you should consider.
2. Take a long-term view - Home prices go through cycles, and while they can come down, in recent history home prices have done nothing but climb. By waiting, you risk having to pay more later. Either way, you're going to end up with a higher housing payment, it's just a matter of whether your paying it into your own investment (home) or a landlord's.
3. Look for special programs - Low down payments and special borrowing programs can allow you to take advantage of home ownership now, which can also be a significant financial benefit in the long run. There are various loan programs available that allow for lower down payments, sometimes as low as 3% or even 0% for certain qualifying individuals. Abound's mortgage loan officers can help guide and prepare you for up-front costs. They can also help you understand opportunities to potentially reduce your rate down the road with a home loan refinance.
4. Consult with the experts - Navigating the realm of real estate, especially in a changing economic environment, can be daunting. Seeking guidance from real estate professionals, financial advisors, and mortgage experts is invaluable. Trusted professionals, like the experienced team at Abound, can help assess your unique situation, offer insights into market trends, and guide you toward making an informed decision.

You may be surprised by just how many programs are available to help make home ownership possible. Learn more or apply online today!

Chuck Eads

Chief Lending Officer

Abound Credit Union