09/03/2024
What is an interest rate and why is it so important when buying a home?
An interest rate is the cost you pay to the lender for borrowing money to finance your loan, on top of the loan amount or your principal.
So when you see commercial and ads telling you that “interest rates are high” it simply means that the cost of borrowing money is high at the time but that should never deter you from buying at that time because you can always refinance your loan!
I also feel it’s better to look and buy a home when interest rates are a little high because less buyers are looking and competition is lower so you have a better chance of getting the home you want without getting into a bidding war!