You could purchase now, and stay within a price range that will ensure that you can capture the full PITI (principal, interest, taxes and insurance) after 5 years, by turning that home into an investment property & renting the home out. If you secure a renter with a lease, you can use that to help qualify for a new mortgage in your new city. Of course down pymt, fico score,debt to income ratio will all be analyzed again.
You could sell your home before you move, hopefully with enough equity for a down payment on your next home. Very hard to say where rates will be in 5 years, but inflation is ahead, we keep hearing, that will drive rates up evntually.
As others have already stated correctly, the loan is attached to the property and will not transfer. If you find a super deal now, you may just be in a good position in 5 years. Good Luck, let me know if you want any help!
Windermere Real Estate SoCAL
That said, if you ARE going to buy, I recommend buying in a neighborhood where it is easy to rent (North Park, Hillcrest, College Area, UTC, etc) so if you need to, you can rent the home out easily.
I would also make sure that you get a stable 30 year fixed mortgage.
These two things will give you options if you choose to move. Honestly, no one can answer your question legitimately because we simply don't know what the market and interest rates will be like at that time.
If you sell your home when you move, it is possible that you will have some equity that you can use for the down payment on the purchase of your new home. That could make qualifying for a new loan easier.
I work with several lender who can help you with the financing of your purchase and I would like to help you find a home that meets your current needs. Please contact me at your convenience and feel free to use the search feature on my website to look for homes.
I am never too busy for your referrals
The San Diego Property Shop
CA DRE # 00648687
If you need to move in 5 years, sell your current home and buy a new one. The rate might be higher, but hopefully you will have made a bit of equity and can put a larger downpayment down.
No one has a 'crystal ball' as to where interest rates will be in 5-10 years. I am hearing that rates will remain relatively flat into 2014. The prices of real estate may very well be on an upward trend here as I am seeing multiple offers on listings which indicates a 'tipping point'. The buyer pool is growing so the demand is higher than the current supply. Watch the marketplace for new listings and see how long they last on the market and how much they eventually sell for...many of them are going for more than the listed price (because of multiple offers) and are going off the market in the first week.
I live/work in 92104 so if you need a Realtor once you have your loan pre-approved you are welcome to contact me. I can be reached at http://www.BiancaRomani.com. When you decide to interview agents please contact me.
Great question but I hate to say interest rates do not transfer to new purchases. Its smart that you are keeping current on this historic interest rates which are making it a great opportunity to buy here in San Diego. Watch this short video that will describe how affordable buying now is compared to buying just 5 years ago... what an eye opener to those first time buyers or people on the fence about buying. http://www.youtube.com/watch?v=UWvRk4wjOws&feature=share I hope you found an answer to your question and found this video helpful.
Take care and good luck with your purchase,
Woods Real Estate Services
930 W. Washington St. #1
San Diego, CA 92103
Unfortunately, your interest rate is tied to a particular loan, so you'd be buying a new home at the interest rates at that time. Hopefully, they'll still be low!
Cory La Scala, REALTOR
The mortgage is a loan specific to a property and property value.