Reasons to Refinance - 7/10/2020
Does high inflation discourage your from buying a home?
Inflation devalues the purchasing power of money and the interest earned on savings is almost always less than inflation. Tangible assets like your home consistently become more valuable over time. In inflationary periods, a home is a good investment and a hedge against inflation. Borrowing money at fixed rates during times of inflation can be very advantageous...like buying a home. The rate stays the same over the term of the mortgage and so does the payment instead of going up at the rate of inflation. In September 2022, rents rose by 7.2% according to NAR Chief Economist, Lawrence Yun and "rents are accelerating to higher figures with each passing month." The annualized rate for this year is 10.6%. Buying a home allows you to avoid rent increases while enjoying property appreciation. The housing shortage that is fueling the price appreciation, as well as increases in rent, is something that has existed for over ten years, yet...
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