Don’t Wait for Mortgage Rates to Drop: Here’s What Homebuyers Should Do Instead – CNET.com
July 22, 2023Mortgage rates are an important factor to consider when making a homebuying decision, but they shouldn’t be the sole basis for your decision,” said Jeffrey Taylor, founder and managing director at mortgage processor and risk compliance consulting firm, Digital Risk.
The higher your down payment, the lower your loan-to-value ratio, or LTV will be. “Any way to reduce your loan-to-value ratio could potentially result in a lower interest rate,” Taylor said. In addition, a 20% down payment will also help you avoid paying private mortgage insurance, or PMI.
“The decision to wait it out or take the plunge in the current interest rate market should be based on a careful assessment of your financial readiness, long-term plans, personal circumstances and what you qualify for,” Taylor said.
