I will wait for rates to drop. Let us actually do that math, both halves of it.
A $950,000 loan at 6.65 percent runs about $6,100 a month. The same loan at 5.65 percent runs about $5,500. That saving is real, and it is roughly $600 every month.
Here is the half that gets left off. Every time rates fall meaningfully, the buyers who were sitting out come back all at once, and prices move. A five percent price rise on that same house hands back about half of what you saved, and now your deposit needs to be about $12,000 bigger too.
Sometimes waiting is correct. If your job is unstable, your deposit is thin or your credit is mid-repair, waiting is the right answer and I will say so to your face. Wait for a reason you can name. Do not wait for a headline.
You do not get the low rate and the low price. Historically you get one of them. Decide which one your situation can actually carry.
Run this on your own market.
The short version
- Because the saving is real.
- And so is what happens next.
- $950,000 at 6.65% is about $6,100.
- The same loan at 5.65% is about $5,500.
- A 5% price rise hands back half of that.
- And your deposit needs to be $12,000 bigger.
- Wait for a reason you can name. Not for a headline.
Talk it through with Kini
Kini will run it with you on your real budget, anywhere in Orange, Los Angeles, Riverside or San Bernardino County. No charge and no pitch.
Book a consultation or call or text (323) 320-1725. See twenty years of mortgage rates in the California Rate Atlas.