Adjustable-rate mortgage (ARM)
With an adjustable-rate mortgage, you are locked in at a discounted interest rate for a certain period of time, typically a few years. Once that time period is up, your interest rate will default to whatever the current market rate is. If you are purchasing a starter home or planning on moving again in the next few years for whatever reason, this may be perfect for you!
BUY, then Refi
Rates fluctuate constantly, almost every day! After purchasing a home, you are not stuck with the interest rate you got forever. Buy the home you like, watch the rates, and as soon as they're lower than yours, tell your lender you'd like to refinance.
Moral of the story... marry the house and date the rate.
Don't let interest rates discourage you from buying a home in this market. A lot of buyers have dropped out and lowered your competition. Homes are expected to continue to increase in value, but not as rapidly as they did before. Waiting for rates to come down will cause you to pay more for your house later.
Are you looking to purchase a home? Let's chat! I'd love to help you reach your home goals.
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