Mortgage Tip:  

If you’re shopping for a home today, you know it’s kind of hard work. You might not find something right away and it’s easy to get fatigued. Sometimes buyers get discouraged and say, “Let me take off a few months, maybe I’ll come back 6 months later.”  

Here’s the thing: while you can take some time off, the market isn’t taking time off! And it’s hot right now in Alameda County. The forecasted appreciation is 3.2% in just the next 6 months. Let’s quantify that.  

A home worth $920,000 today could be worth $29,600 more in 6 months. Additionally, if you were planning on putting the same percentage down, you would have to borrow more because the home is more expensive. And how about interest rates? Even though rates are at very attractive levels, does it make sense to wait for rates to go down further?  

No! The monthly savings with a lower rate are nice, but they are quickly dwarfed by the missed appreciation and amortization, and it would take many, many years to recoup what you would have lost. Should rates drop significantly, we can always refinance you in the future. Stick with it, and keep shopping. You will find something!  

I’m Rouvaun Walker and that’s this week’s Mortgage Minute.  

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