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How To Some What Negate Higher Interest Rates When Buying a New Home 2022 Edition

Alright, it's usually best to start with a credibility statement. I've been a real estate agent in Louisville, KY since 2014. I specialize in working with investors, it's always a good time to work with investors because it's typically always a good time to buy or sell. So when it is good to sell, I sell for them. When it is good to buy, I buy for them. Unfortunately, with these interest rates it makes it more difficult to find deals that turn a profit. As a result, I've come up with something to soften the blow because right now is a great time to buy opportunity to buy (demand is down). Interest rates are crazy high (I'm 34, but our parents saw much higher, but lower entry level price, and cost of living was way more reasonable. Anyway, the life tip! Prior to committing to your mortgage lender. Ask them to sign a promissory note at closing that you can refinance at THEIR cost within six years. This makes your loan work like a reverse arm where it can only go down...or these rates are the best they'll be for awhile so you should be happy. So now you get the asset (house), with potentially much better rates down the road. Ex: Rates are currently going to be around 7% or so if you speak to your local mortgage lender. Let's say they drop down to 4.5% late in 2023. Now you'd be able to significantly cut back your interest rate, potentially cash out refinance, or at least get rid of your PMI (mortgage insurance).

submitted by /u/LouInvestor
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source https://www.reddit.com/r/RealEstate/comments/z58hw5/how_to_some_what_negate_higher_interest_rates/
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