If you’re renting in North Dallas and thinking about buying, you’ve probably asked yourself this question more than once: Should I buy now, or wait?
It makes sense to hesitate. Rates are sitting around 7.5%. The headlines change every week. Nobody wants to make a big financial move and regret it a year later. So a lot of buyers are doing the same thing right now. They’re waiting. But waiting isn’t free. It has a cost too. It’s just harder to see.
Let’s look at the numbers
Here’s a simple example. Say you find a $500,000 home today and put 20% down. At 7.5%, your monthly principal and interest is about $2,797. Now say you wait a year, and rates drop to 6.5%. That’s what most people are hoping for. But when rates drop, buyers who’ve been sitting on the sidelines come back. More buyers chasing the same homes usually drives prices up.
| Scenario | Home price | Rate | Down payment (20%) | Monthly payment |
|---|---|---|---|---|
| Buy now | $500,000 | 7.5% | $100,000 | $2,797 |
| Wait 1 year, prices up 10% | $550,000 | 6.5% | $110,000 | $2,781 |
| Wait 1 year, prices up 5% | $525,000 | 6.5% | $105,000 | $2,655 |
| Buy now, refinance later | $500,000 | 6.5% | $100,000 | $2,528 |
Principal and interest only on a 30-year fixed loan. This excludes taxes, insurance, HOA, and refinance closing costs. These are example numbers, not a forecast.
Look at the second row. You waited a full year for a lower rate, and your payment is almost exactly the same. Except now you needed $10,000 more for your down payment, and you owe $40,000 more on the loan. Now look at the last row. If you buy now and rates come down later, you can refinance. You lock in today’s price and still get the lower rate.
You can change your rate later. You can’t go back and change the price you paid.
Because the market is slower right now, we are seeing buyers get homes below appraisal value. One buyer actually contracted on a home that is $50,000 below appraisal, so prices going up 5-10% in a year or two is very realistic because they are making money going in, and we have pent-up demand in our Dallas-Fort Worth market.
The part of waiting nobody talks about
While you wait, you’re still paying rent…every month. Rent gives you a place to live, and that matters. But none of it comes back to you. It builds your landlord’s equity, not yours. (Yes, you are paying someone else’s mortgage!!!) When you own, part of every payment pays down your loan. In the example above, about $3,700 goes toward your principal in the first year alone, and that number grows every year after. Here are your estimated mortgage paydown for the first 5 years.
Year 1 – 3,756
Year 2 – 4,048
Year 3 – 4,362
Year 4 – 4,701
Year 5 – 5,066
In the first 5 years, you will have paid down your mortgage by $22K. If your home’s value rises, you benefit from that growth too. Let’s also assume a 4% annual appreciation rate, the national average. That would add $85K in appreciation over the next 5 years! Renting at $2,500 a month over the next 5 years would cost you $150,000! There are other factors to consider when owning a home, including insurance, property taxes, and repairs, but I think this gives a sense that it may be worth a conversation if the timing is right.
Here in Dallas–Fort Worth, many buyers are sitting on the sidelines right now. North Dallas communities like Frisco, Plano, McKinney, and Prosper keep drawing new families and new jobs. When rates ease or the economy settles down, many of those buyers will move at the same time. That’s when competition picks up, and prices tend to follow.
So the real question isn’t “Are rates perfect?” It’s “What does waiting actually cost me?”
When waiting is the right call
I’m not going to tell you everyone should buy today. That wouldn’t be honest. Waiting can be the wise move if your job feels unsteady, if buying would drain your emergency savings, or if you might move again in the next few years. And a refinance is never guaranteed. Rates may not drop, and refinancing has its own closing costs.
Here’s the rule I give every buyer: only buy a home if the payment works at today’s rate. If you refinance later, it’s a bonus. Don’t build your budget around it. If the payment fits, the home is right, and you plan to stay a while, waiting for the “perfect” moment may cost you more than it saves.
One thing to do this week
Pull up your lease and write down two numbers: your monthly rent and how much you’ll have paid by the time your lease ends. Then let’s sit down and run your real numbers side by side: buying now, waiting a year, and what each one looks like for your budget. No pressure and no obligation. Just a clear picture so you can make the right decision for you.
Reach out anytime. I’m happy to help you think it through.