Three Ways To Counteract the Rate Increase
Updated: Mar 12
It isn’t a secret that rates have climbed over the last few weeks. Due to inflation concerns and a strong job market, the trend toward higher rates will continue for the time being. Every market change creates opportunities. Some buyers no longer qualify for their target home price, and sellers are willing to negotiate. Fortunately, there are strategies you can employ to mitigate the rate impact and secure a great deal. Use Seller Credits to Increase your Buying Power Negotiating a seller credit to decrease your interest rate permanently can improve your buying power. Use a 2/1 Seller-Paid Temporary Buydown to Lower Your Monthly Payments One of the best ways to temporarily lower your monthly payments is to utilize a temporary buydown. Your interest rate is 2% lower in the first year and 1% lower in year two. Combine a Temporary and Permanent Buydown You can combine a permanent and temporary buydown for the best of both worlds. Limitations apply to this strategy, and it isn’t suitable for everyone. During your pre-approval process, we will analyze your options and make you a recommendation. Real estate is local and personal. Talk to your agent about the opportunities these changes create in your market.
Happy House Hunting!