Have your cake and eat it too!
There is an amazing opportunity knocking in the market right now. One that more buyers and investors could be taking advantage of. Do not let the hiking rates we are experiencing now intimidate you. What goes up, must come down. That is the cyclical nature of the market.
The rise in rates have started to move the needle to a more equal playing field, helping buyers gain leverage in the market. The seller is no longer completely dictating the entire transaction and may even offer concessions.
It is important to note that some markets have adjusted quicker than others so, working with a Realtor and Lender team familiar with what is trending in your market will get you the best results and an outcome that will best suit your home and financial needs.
What does this all mean for you as a buyer? This means we have the ability to negotiate more favorable terms when making an offer on a home. If you are someone who has been waiting for THE moment to buy, then your time is now.
An example of what is possible in today’s market is a closing credit given by the Seller to help alleviate your interest rate in the first, second or third year of your mortgage. This allows you to save money on your mortgage payment while rates are higher, and waiting, for the refinance opportunity when rates drop back.
That closing credit gives you the option of making payments at a lower rate now, in some cases as much as 3% lower than current market rate. Then refinancing into a similar lower rate in 1-3 years.
Based on inflation data and current economic trends, you will likely never make a payment at the higher rate after the buydown period is over. This is what we like to say is, “having your cake and eating it too!”
Comments