Why Waiting for Lower Rates Could Cost You Thousands

Why waiting for lower rates could mean missing out on rising home values and higher future payments.

Chip Free is a seasoned real estate advisor with Lake Realty, a locally established firm in Lake Norman that his father founded over 30 years ago.

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You’re probably here thinking, “Maybe I should wait for interest rates to drop before buying a home.” It sounds smart, right? But here’s the truth: waiting could actually cost you way more than you think! It’s not just about lower rates; it’s about locking in the best deal now. Let me break it down for you in simple terms.

It’s all about comfort. First things first—can you afford the payment? If it feels too tight, then waiting is fine. But if you’re just worried about a rate drop, there’s more to consider, like home appreciation.

The refinancing rule. Let me let you in on a little secret: If rates drop by at least 0.5%, it’s time to refinance. Why? That’s when the savings really add up. Think of it like this: If you buy a $500,000 home with 10% down at a 6.5% interest rate, your monthly payment would be $3,031.81. But if rates fall to 6%, your payment drops to $2,885.48, saving you $146.33 every month! If you wait for rates to drop by another 0.25%, you could lose out on nearly $878 in savings over six months. So, grab that half-percent drop when it comes!

“While you’re waiting for lower rates, home prices might climb. ”

The real cost of waiting. While you’re waiting for lower rates, home prices might climb. In Charlotte, for example, home prices have been growing at 5% to 7% a year. So, that $500,000 house you’re eyeing could be $525,000 next year. Plus, your loan amount and monthly payment would rise, too. The kicker? You’d end up paying almost the same each month as you would now. But you’d have $25,000 more in equity if you buy today!

More buyers, more competition. Think rates are dropping soon? So do lots of other buyers. Once rates dip below 6%, expect more competition. More buyers mean higher prices, so buying now could help you avoid a bidding war later.

Ultimately, the decision to buy or wait depends on your personal situation. But here’s my advice: Run the numbers! Consider the interest rates, home prices, and how comfortable you feel with the payments. If you need help figuring this out, let’s chat. You can call or text me at 704-806-2410. I’d be happy to help answer your questions regarding real estate.

Watch my previous video here: https://youtu.be/0IpzTdb7UrE.

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Client Testimonials

"Chip is by far the best agent I have ever worked with. I have bought 7 homes over my lifetime and Chip provided me and my wife with the best level of service. He was genuinely concerned more about our interests and satisfaction than he was with simply closing the deal. He provided advice when I wanted it, but also knew when to just give us time to consider our options. He went out of his way to ensure we were comfortable with our decisions before moving forward. Chip also continued to follow up long after the deal was done. I highly recommend him"

- Nathan M.

Chip doesn’t deserve 5 Stars, he deserves 10 Stars!!! He has helped us buy 2 homes and sell 3. All homes were sold in a matter of weeks and the process is painless from start to finish. His professionalism is definitely refreshing in this day and time! He does all the work if any issues arise… specifically when we were selling our home on Lake Norman, the original Septic Permit on file was only for (3) Bedrooms. Chip reached out to the Environmental Supervisor for Mecklenburg County Environmental Health and got us an approval letter for (5) bedrooms which was crucial for the sale of this property. I can’t say enough about Chip and the team at Lake Realty… stellar job and great family owned company!!! Thank You

- Thomas G.

We want to thank Chip Free for his help and guidance in selling our lake home. It was an excellent experience. We had difficulty with our dock permit and Chip went above and beyond to resolve the issues which meant countless hours, phone calls, emails, and visits on his end.He was professional and involved from the beginning of the process till the end. We could not have asked for a better experience.We have recommended him to friends which we believe is the best testimonial that we can give.

- Scott & Rhonda M.

Chip at Lake Realty helped us sell our house in 2021 and then again this year when we were looking to buy again. He knows what he’s doing, offers invaluable insight into the market, and works within your parameters to help you reach your goals! His responses to my endless questions are always quick and informative, and he goes above and beyond meeting up any time we saw something we wanted to tour. An added perk of working with Lake Realty is a moving truck they allow clients to use to pack up and go! We’ve used that a number of times and it has saved us a lot of money and headache. My husband and I have been more than pleased each time we've worked with Chip and will absolutely use him as our agent the next time we sell, not to mention pointing friends and family his way. if you're looking to buy or sell a property, look no further, Chip's your guy!

- Alyssa & Lee L.

"When looking for someone who knows Lake Norman and the surrounding area, look no further! Chip and his team helped me locate the right area to live on Lake Norman and guidance in selecting the homes that fit my needs. Negotiations on a $3.5m home could seem daunting, but Chip made it look easy. Very happy I chose Chip and his team as my realtors and highly recommend others to do the same if you want a smooth buying process!"

- Matt A.

Why Waiting for Lower Rates Could Cost You Thousands

Why waiting for lower rates could mean missing out on rising home values and higher future payments.

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