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The interest rate blues

Are these natural first time homebuyers jitters, or are the voices in my head correct ?

After years of methodically saving, we finally have enough money to put down a modest (<10%) downpayment. We have been seriously shopping for SFHs for about a month in our HCOL area and were pre-approved for a loan with a 6.2% interest rate threeish weeks ago. We found a house we really like that was at the lower end of our budget. Our offer was accepted after some negotiation and we went back to the loan officer to start filing the paperwork. As he is going over the numbers with me he notified me my interest rate would be 6.7%.

In my ignorance I thought my pre-approval rate at 6.2% was locked in, and while we can afford 6.7%, it spiked my anxiety. I quickly shopped around again and found very similar rates. 6.2 was already high, that extra .5 feels like the straw that broke my back. This has me losing sleep and questioning whether it is worth it.

I was zen about our circumstances - we simply couldnt buy a few years ago, and that is just the way it is - but this makes it suddenly feel like we're suckers buying at a bad time. Like interest rates will crater in 6 months of us buying and we'll be the only ones on the block paying 6%+.

We're not thinking this is a lifetime house but are planning to stay ~5 years. I estimate our monthly payments by year 2 or 3 will be about the same as the cost of us renting something similar - and so at the end of the day I think it's worth it. That extra .5% is just gnawing at me though and I needed to rant about it.

submitted by /u/WeGotTheSameWorms
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/13qmmai/the_interest_rate_blues/
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