Let's Ask Katie

By: Katie Machoskie

Dear Katie,

We’ve been renting a house for 5 years and want to buy. We can’t afford much more than what we pay in rent but have saved up a 20% down payment. Is it a good time to buy? Interest rates are so much higher than a few years ago – will they go back down to 2-3%?

Farrah M., Newport Coast

Great questions, Farrah,

Owning a home offers many benefits over renting, especially for people who have been renting for a significant period and have saved up a down payment like you. First, owning a home provides a sense of stability and security. Unlike renting, homeownership offers the freedom to customize and personalize living spaces, creating a true sense of belonging. Additionally, the equity built through mortgage payments allows homeowners to accumulate wealth and potentially benefit from property appreciation. Your financial investment now can serve as a valuable asset for the future. In renting, you’re paying your landlord’s mortgage and I personally would prefer to pay my own mortgage and build equity than do it for someone else. 

Congratulations on saving up a 20% down payment after renting for 5 years. That is a great first step. With a substantial down payment, you should be able to get a favorable mortgage rate and lower monthly payments. An experienced real estate agent and mortgage advisor will help you evaluate current housing market conditions, such as inventory levels and local demand, and help you make an informed decision.

As for interest rates, while they are currently higher than a few years ago, it's difficult to predict the future. Consulting with a real estate professional and a mortgage advisor can provide valuable insights and guidance to make the best decision based on your individual circumstances. But bottom line, the old adage never fails, as real estate historically appreciates over time.  

“It’s better to buy real estate and wait, than wait to buy real estate.”

Katie Machoskie is a REALTOR and Founder of the Machoskie & Associates team at COMPASS in Orange County. With over 21 yrs of experience, she has sold over $1.23 billion. She and her team of neighborhood specialists are ready to assist you anywhere in OC. Have a question? Email her at katie.machoskie@compass.com DRE#01380037 Follow her on Instagram @machoskiehomes.com

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