Rising mortgage rates have been the big story in real estate this year. However, buyers are still in the market, adjusting to the “new normal” and confident their dream home is within reach. With proper planning, and a wide range of available loan products this can help buyers and sellers deal with the evolving market conditions.
To alleviate some of the impact from higher mortgage rates, lenders have recently introduced buydown programs. The program temporarily reduces the interest rate by anywhere from 0.5% to 2% for the first year or two of the loan. Not only do homebuyers benefit from a lower monthly payment during that time, but sellers can also offer the program as a buyer incentive.
That dream home is a long-term commitment. A mortgage, on the other hand, doesn’t have to be. Refinancing is a fairly easy process today. And as the Fed gets inflation under control, rates are likely to come down, offering today’s borrowers an opportunity to redo their loan and save money.
When a buyer anticipates being in their home for a shorter period of time, an adjustable-rate mortgage (ARM) might be the solution. An ARM has a lower introductory interest rate than a 30-year fixed, but resets after an initial period, usually 5 or 7 years. The borrower may sell or refinance before the reset or – if rates drop – allow the loan to reset and ride the rate down. Borrowers can also permanently buy down a fixed-rate mortgage by paying points.
Whether you’re planning to buy a home this year or next, call us for your complimentary consultation to best determine a plan for your goal of homeownership.
Your Trusted Resource for Real Estate
@properties shares my commitment to offering the most comprehensive and professional marketing, sophisticated technology, and expert market knowledge, supporting the highest standards of service and representation you expect and deserve. With local leadership and national and international reach, I bring results to clients wherever their buying and selling goals take them. I'd love to assist you. Whether you're in the research phase at the beginning of your real estate search or you know exactly what you're looking for, you'll benefit from having a real estate professional by your side. I'd be honored to put my real estate experience to work for you.
I appreciate and welcome your inquiry, real estate need, or referral!
