Marry the House, Date the Rate!

It acknowledges that individuals often have legitimate reasons for needing to move to a different property, such as factors like size, location, or schools, and may not be able to wait for interest rates to change before making a purchase. The idea is to emphasize the importance of fulfilling one's immediate housing needs while understanding that mortgage options can be revisited down the road.

There are a couple of ways to manage this situation:

Some banks offer the option to recast a loan. Recasting involves making a large lump-sum payment towards the principal balance of the mortgage, which then results in a lower monthly payment. This can be an attractive option for homeowners who have the means to reduce their principal balance after purchasing the house. It effectively adjusts the loan terms without the need for a full refinance.

Refinancing is another option to consider. This involves obtaining a new loan to replace the existing mortgage. By refinancing, homeowners can take advantage of lower interest rates or change the loan terms to better suit their financial goals. It's important to carefully evaluate the costs and benefits of refinancing, such as closing costs, to determine if it is a viable solution in the long run.

Ultimately, the key message behind "marry the house and date the rate" is that if there is a genuine need to move, it is often necessary to act based on current circumstances rather than trying to time interest rates perfectly. By focusing on finding a property that meets your needs and is within your financial means, you can address your immediate housing requirements. Then, in the future, when the opportunity arises, you can explore options like recasting or refinancing to optimize your mortgage terms.