Why Now Might Still Be a Good Time to Buy

Couple smiling from inside house

If you’re wresting with the thought of homeownership, chances are you’re not alone, especially in a market where mortgage rates are on the rise.

It’s only natural to ask: “Is now the right time to purchase?”

Understandably, high mortgage rates can be intimidating. But before hitting the pause button on your home buying dreams, consider these reasons why now might still be a good time to purchase.

Opportunity to Build Equity – Now

Equity is a powerful financial asset, and it’s essentially the part of your home that you “truly” own.

Every mortgage payment you make chips away at your loan balance, while also contributing to your home’s value. This means that over time you’ll gain more ownership in your property.

Equity offers multiple advantages. First, since your home will appreciate in value, it’s like a savings account you don’t have to think about. And second, it can serve as a safety net, allowing you to tap into it for major expenses or financial emergencies.

This is unlike renting where every month’s payment goes toward building your landlord’s net worth, and not your own.

Possibility of a Better Rate in the Future

Another reason to consider buying – even with rising mortgage rates – is the potential for future savings.

When interest rates eventually drop, you might have an opportunity to refinance your mortgage. Many loans are eligible for refinance after six months.

Refinancing is the process of replacing your current home loan with a new one (typically with a lower interest rate). A lower rate can reduce your monthly payment and leave more money in your pocket.

This flexibility and potential for significant savings is something you won’t enjoy as a renter.

Buying Lets You Personalize Your Space

There’s also the joy of making your house a home.

Homeownership gives you the freedom to personalize your living space to your heart’s content. You can decorate any way you like – paint the walls your favorite colors and choose a flooring that suits your style.

Additionally, owning a home means you can easily welcome pets into your life. No more worrying about pet restrictions or expensive security deposits.

How to Make Owning More Affordable

The good news is that many loan programs allow no or low down payments. In other words, you don’t need to save a massive amount to purchase a home. This can make it easier to get your foot in the door.

Additionally, you can take advantage of seller or lender-paid temporary buydowns. This approach saves money because it lowers your interest rate during the initial years of your mortgage.  

For example, with a 3/2/1 seller-paid buydown your interest rate drops by 3% in the first year, 2% in the second year, and 1% in the third year. From the fourth year onward, you’ll pay the original rate for the rest of your loan.


Buying a home is an investment in your future. No matter what rate you pay, each mortgage payment builds equity. So if you can afford to buy now, don’t let concerns about interest rates hold you back.

Our free affordability calculator can help you estimate a comfortable monthly payment. To learn more about your options, please contact the loan experts at FirstBank Mortgage.

We’re here to help. Anytime.

Have questions? Contact us for neighborly advice.

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