Jan 11, 2026

Suze Orman: 4 Signs You Should Buy a Home Now — Even With High Mortgage Rates

Written by Gabrielle Olya

Edited by Brendan McGinley

Even though mortgage rates are high, it might still be a good time for you to buy a home.

"With the interest rate on a 30-year mortgage more than doubling over the past few years — to more than 7% today — buying a home has become an even more challenging financial move. Yet that doesn't make now a bad time to buy a home if you can afford it, and if it is a good fit for your long-term goals," money expert Suze Orman wrote on her blog.

Orman believes that even if it's cheaper for you to rent than buy in your area, buying might still be the better move — as long as these four key things are true for you.

Weigh Advice: Suze Orman’s 10 Money Tips To Pay Off Thousands in Debt

Read Now: Meet Your Complete Financial Toolkit. Budget, Build Credit, And Track Your Money - All In One Place

You Plan To Stay in Your Home for at Least 5 Years

If you plan to stay put for at least five years, buying will likely be the better option.

"The longer you can envision you want to stay put, the more confidence you should have in a home as an investment," Orman wrote. "Not like a stock, but as an asset that over time will likely rise in value. The longer you own a home, the more likely it will rise in value."

You Have a Healthy Emergency Fund

If you have at least eight months' worth of living expenses saved in your emergency fund, you're probably in a good financial position to purchase a home.

"This is vital financial security if you are taking on the responsibility of a mortgage," Orman wrote. "And to be clear, it will also help you secure the best possible mortgage deal from a lender. They like to see you have a cushion!"

You've Saved Enough for a 10% Down Payment

If you can afford at least a 10% down payment, you're likely ready to buy — though Orman still believes you should aim for 20%.

"A 20% down payment [is] a key way to qualify for the best mortgage interest rate, which is so very important today," Orman wrote. "But I also realize that sharp home price increases over the past few years may make 20% too much of a stretch."

You Can Afford a 20% Increase in Your Home Insurance Premium

It's important to have some wiggle room in your budget to be prepared for a possible increase in your home insurance costs.

"In the past few years, the cost of homeowner's insurance has increased at alarming rates in some parts of the country," Orman wrote. "Before you shop for a home, I want you to have a clear-eyed estimate of what a solid homeowner's policy with extended-replacement coverage will cost today. Then add 20% to that cost.

"I am not saying premiums will rise by 20% in the coming years," she continued. "But given what is going on with the intensity of bad weather events and rate increases, you need to make sure you could handle a sharp increase."

This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

More From MoneyLion:

Written by

Gabrielle Olya

Edited by

Brendan McGinley