Uncertain Interest Rates: Should You Buy Down Now? #interestrates #buydown #volatility #housingvalue

Thinking about buying down the interest rate, you may want to hold up for a minute. The market is crazy. Volatility is everywhere, not only in the housing values, but also when it's associated to rates. We have seen rates go to the moon and back down to the fives as in a month ago. So it's important to really take the rate environment into consideration. Buying down an interest rate can cost you thousands of dollars to only save you maybe a couple hundred dollars a month. Now, if we think about that, and if rates decide to come down in the next six to 12 months, we would likely advise you to refinance at that point to get to the lower rate. However, the money that you use to buy down the interest rate is now gone. You cannot recoup that money. So it's important to really take the environment into play when you make these decisions, especially when you're talking about thousands of dollars.