The Sleep Factor

Few would argue with the perspective that real estate ownership is a keystone of growing personal wealth. In today’s market, we are seeing a stabilization of pricing and the pattern of interest rates is a hot question from week to week. As rates came down slightly over the past week, many young people are wondering when to get into the market and what kind of rates to consider. When buying a home to live in, I don’t believe there is a bad time to buy. I say this because owning a home is always better than renting. Why pay someone else’s mortgage? And the interest rate question is a personal choice. I work by a philosophy I call “The Sleep Factor”. When deciding between a fixed and variable rate mortgage consider how you feel about your monthly payment potentially changing with interest rate changes. Consider if you will be more comfortable knowing your payments will be the same each month or if you are willing to take a lower payment with the chance the payment may rise. Will you be up a night worrying about your interest rate? If the answer is yes, a variable rate is not worth the loss of sleep. Buy now, lock in and get some rest!