Buy Chicago condo at 5.71% or wait for rates to fall?

[WorthyRiver]

I’m considering a $435,000 Chicago condo at a 5.71% mortgage rate. I can afford the monthly cost today, but I’m wondering whether waiting for cheaper financing would simply mean competing with more buyers before inventory improves.

What stress tests would you use rather than trying to predict both rates and prices? I’m particularly concerned about refinance assumptions, a future rate reset, and resale risk if I need to move sooner than expected.

 

[direct_map]

I’d make the decision work without a refinance. Compare the current payment with a higher-payment scenario, then add condo assessments, insurance, taxes and a maintenance cushion. Also compare the total cost over the period you realistically expect to own, including lender fees and any early-repayment cost. A lower future rate is upside, not the plan.

 

[ari.cedar]

That’s sensible, but the missing fact is your expected holding period. Resale risk matters much more if you might leave in a few years, especially for a condo where building finances and assessments can affect demand independently of mortgage rates.

I’d ask the lender how the loan-to-value could change after a price decline, whether the mortgage is portable, and what refinancing would cost. Then run three cases: no refinance, refinance later with fees, and sell earlier than planned.