The Problem with "Date the Rate and Marry the House"
We’ve all heard realtors and investors say, "Date the rate and marry the house."
It’s a catchy phrase designed to comfort buyers in uncertain markets: “Buy the house now, get a good deal, and you can always refinance later when rates drop.”
But there’s a flaw in this advice, one that could lead to financial strain for buyers who aren’t prepared.
The problem is simple: if house prices fall, you might not be able to refinance without bringing significant cash to the table.
Let’s say you bought a house for $400,000 at a 7% interest rate—you're "marrying" the house but "dating" the rate.
A year later, rates drop to 6%, which looks like a great opportunity to refinance and lower your monthly payment.
But the housing market has also dropped, and now your home is only worth $350,000.
To refinance at the lower interest rate, you’d have to cover the...
50% Complete
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.