Defining ‘Date the Rate, Marry the House’

As mortgage interest rates have gone from historic lows in 2020 and 2021 into higher territories in 2022 and dropping again at the end of 2025, a phrase has been repeated by real estate agents and other housing experts.

But what does it mean to “date the rate, marry the house”?

And how can it apply to you?

Find out what this saying means and how it can help you on your homebuying journey. Or, if you’re ready to start on your homebuying path, talk with a Loan Officer about today’s rates.

‘Date the Rate, Marry the House’ meaning

This is based on the idea that buying a home is a long-term commitment, but the terms of your mortgage can be revisited. Essentially, you “marry” a house by looking for a property that has the elements that will matter to you for years. And you “date” the rate by getting the best rate you can when you purchase, knowing that you can “break up” with the rate by refinancing when it makes sense to do so.

What it means to marry the house

Marriage suggests a lifetime commitment, similar to how many buyers approach purchasing a home. In fact, the average homeowner stays in their home for around 12 years, which is not quite a lifetime but still a commitment.

It makes sense that people are staying in their homes for such a long time. Not only is there financial commitment, but it can be hard to find a home that satisfies your needs as well as your current home does.

That’s why when you find a house that you fall in love with, you shouldn’t hesitate to “marry” it, as it were, by making an offer. If you don’t, it may not be on the market long enough to allow you to wait for rates to come down. And you may have a hard time finding another home that ticks all of your boxes as well.

What it means to date the rate

“Dating the rate” really just refers to all of the financing options that a lender can offer you.

In short, you aren’t stuck with the rate you have when you first sign your mortgage. If rates drop, you have refinance options to match the lower rates.

While national average rates may go higher, you have more than one option that will allow you to bring down your mortgage rate, at least for a period of time. And there’s always the option of refinancing, which we’ll explore in more detail below.

But first, here are a few of the loan programs that our Loan Officers could offer that could help you get a lower rate.

An Adjustable-Rate Mortgage (ARM) is a home loan with an interest rate that stays fixed for an initial period before adjusting periodically based on market conditions, causing monthly payments to rise or fall. They offer lower initial rates compared to fixed-rate loans but carry risks of higher payments later, which can be attractive for buyers planning to sell or refinance within a few years. Typically, the fixed rate period is for 5, 7, or 10 years.

RateReduce is Rate’s temporary buydown program.

A temporary buydown reduces the interest rate on your mortgage for the first year or few years of your loan. The seller contributes to your loan to lower the rate during the initial period, and then payments go back up after that initial period ends.

Rate offers five types of temporary buydowns through RateReduce. The most common is called a 2-1 buydown, but there’s also a 3-2-1 buydown, 1-1-1 buydown, 1-0 buydown and 1.5-0.5 buydown. Their names correspond with the periods of lower rates. So, a 2-1 buydown offers a 2% lower rate for a year and a 1% lower rate in the second year before the rest of the mortgage reverts to its original rate.

These options change your mortgage rate over a period of time, which reflects the changes that can happen in your dating life.

Calling it quits on your rate

When you refinance your mortgage, it’s kind of like breaking up with your rate and getting a new, better rate.

A refinance is simply a way to replace your original mortgage agreement with a new contract that contains updated terms and rates that are more attractive. That means if rates come down since you closed on your initial mortgage, you can refinance into a lower rate and potentially pay less each month.

You can also refinance to shorten your loan term, change from a variable rate to a fixed rate and even take out cash to use toward renovations or consolidate debt.

Of course, there are always some caveats. Even if the savings appear worthwhile at current interest rates, you’ll want to take into consideration all the paperwork, time commitment and closing costs associated with a refinance.

Is it worth it to refinance?

When deciding if a refinance is right for you, it’s important to do the cost/benefit analysis of switching to a new loan. This involves figuring out your break-even point.

The break-even point is the point in time when you recoup the costs you had to pay to obtain the refinance. It’s typically a couple of years down the road.

As an example, if you save $100 a month with a new mortgage that will cost you $3,000 in closing costs, your break-even point will be in 30 months.

Refinances tend to make more sense if you plan to stay in your home for a while. The shorter the time you live in your home after refinancing, the less opportunity you have to recoup the cost and take advantage of a refinance.

Being smart while dating the rate

The “date the rate, marry the house” strategy works well when rates go down. Mortgage rates are hard to predict and can rise and fall over time. It’s important to know that you’ll be able to afford your mortgage payments when you buy the home, then wait for the right mortgage rate to come along to improve your situation.

That’s why it’s so important to work with a local lender who’ll be able to help you make the best decision for yourself.

If you are ready to start exploring the current rate, you can begin your refinance application online!

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.

Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact Rate for current rates. Restrictions apply.