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. National mortgage lender – and @properties Christie’s International Real Estate strategic partner – Proper Rate, notes that thoughtful planning and a wide range of available loan products can help buyers and sellers deal with the evolving market conditions.
The Lowdown on Buying Down
To alleviate some of the impact from higher mortgage rates, Proper Rate recently introduced its Power Buydown Program. 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.
Marry the Home, Date the Rate
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.
Tools of the Trade
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 securing a mortgage now or planning to refinance when mortgage interest rates begin to drop, Proper Rate offers complimentary consultations to best determine how to maximize your savings.