Rates & Relationships

By
Mortgage and Lending with Mortgages in AZ, CA, CO, DE, FL, GA, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI NMLS #138061 MMCD #1141

"Marry the house, date the rate!"

 

Has anyone heard this one before?  And by before, I mean, throughout 2022 as rates have risen and pushed most home buyers to the sidelines, bringing the real estate industry nearly to a halt?

 

It's perhaps the most widely used marketing pitch in real estate this year, and it also happens to be one that makes me cringe - every.time.  

 

How do I hate it?  Let me count the ways.  'Marry the house, date the rate' puts out an underlying promise - that is, that the rate someone is getting today is temporary.  Which, with some degree of likelihood, is true - but there are also degrees of uncertainty which are equally important, but not discussed - at all.  And that's my issue.  I've been pretty vocal about my disgust with this marketing gimmick, to the point that Housing Wire reached out and requested I write an opinion piece - so I did, and it was published today in their 'RealTrends' media offering, and can be found in full here: 

Dating the Rate Makes for a Toxic Relationship


In short, marrying home ownership is a wonderful idea - it's a nearly surefire way to increase long term wealth.  But dating the rate?  That's a fantasy, built on the hope that a refinance opportunity will present itself.  And it may!  But it also may not, and for that reason, a major financial decision like buying a home and taking out a mortgage should be based on the current reality, and not what we hope the market will do in 2023.

 

 

Posted by

John Meussner
NMLS ID #138061

It's more than a house - it's home.  So we offer a wide range of mortgage products at competitive prices to help our clients achieve financial security at home.  While we get great feedback on our prices and products, many clients say their favorite part of working with John Meussner & MasonMac is the level of service provided along the way.

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Comments (11)

Liz and Bill Spear
RE/MAX Alliance 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Alliance Cincinnati & Dayton suburbs

John, I know our next loan will have rates higher than I'd like, and I can't assume that that rate will ever come down.  Hopefully it does, but I best be prepared to live with that payment as long as I'm drawing breath.

Nov 29, 2022 03:55 PM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

great advice to all of us - I hope that you have a great week to come!  Thanks John for all the information that you share with us! 

Nov 29, 2022 06:35 PM
Paddy Deighan MBA JD PhD
http://irstaxdebt.pro - Vail, CO
Paddy Deighan J.D. Ph.D

I never heard that before but it is an awesome saying and words of wisdom 

Nov 29, 2022 06:41 PM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good evening John - when I bought I never bank on something in the future.  I did look worse case scenarios to see that I could afford the mortgage.

Nov 29, 2022 08:47 PM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

Uncertainty is a reality of our life's journey, so, it affects everything we engage in, therefore, planning to mitigate risks is essential regardless of what we do. There are several more dangerous challenges than mortgage interest rates, so, owning property has more benefits than being a renter, so marry the house and lock the rate. 

Nov 29, 2022 10:03 PM
Gary J. Muccio, Associate Broker
Keller Williams of Central PA - Camp Hill, PA
Exceptional Customer Service!

Great post John!

 

Yes, this has become the 2022 buzz phrase in the mortgage industry. As many others have stated, we can only base decisions on what we know today. It's up to the buyers to determine their risk tolerance and decide if they are willing to gamble with ARMs and rates dropping in the future. Continued success to you!

Nov 30, 2022 04:35 AM
Erik Hiss
Keller Williams Capital Partners Realty - Worthington, OH
You can trust me for all your real estate needs!

Very good insight never thought about it that way...and yes I've heard that saying a lot lately

Nov 30, 2022 06:02 AM
Dorte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear John,

Over the years, I have found, there is nothing as permanent as a temporary solution, so make it as livable as possible.

Dec 01, 2022 04:27 AM
Matt Brady
Watermark Capital - Del Mar, CA
One of San Diego's Best Lenders

Hi John, I agree that while you can forecast or anticipate improvement in the future, nothing is guaranteed. You never know which politician is going to be elected, so you have no idea of what the future financial strategy will bring. You can make an educated guess and choose a 7-year ARM but telling someone they can get a better rate in the next year or two is unethical.

Dec 01, 2022 01:58 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

John Meussner - Congratulations on being published in RealTrends! I read the article and was beaming because I know you are a valued member here on ActiveRain. I know a lot of people have a lot to worry about with regards to uncertainty. My advice is use credit cards wisely. Pay off the balance every month. Saving for a home is well worth the wait. Rent will continue to rise. Home ownership should give a buyer pride and joy. 

Dec 08, 2022 12:32 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi John:

Yep, this has certainly become a popular buzz phrase this year. You made several excellent points about why it could be misleading as far as future rates are concerned.

Off to read your opinion piece!

Jeff

Dec 08, 2022 12:53 PM