Skip to main content

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
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/z58hw5/how_to_some_what_negate_higher_interest_rates/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more

Co-signing as non-primary resident - effect on size of required downpayment & first time home buyer status?

Contemplating co-signing on a house with my mom and splitting the mortgage payment. I currently have a significantly higher income and much better credit than her. I'm looking at potential home costs and related downpayments but have difficulty using some of the online estimators. From my perspective, this would be somewhat of an investment purchase (I intend to stay in my current location in a different state and contribute to the mortgage), however, for my mom, this would be a primary residence. For purposes of the downpayment size and the type of mortgage arrangement, would it be an investment property or a primary residence? Many thanks for any help. submitted by /u/piercalicious [link] [comments] source https://www.reddit.com/r/RealEstate/comments/km4hvl/cosigning_as_nonprimary_resident_effect_on_size/
Post a Comment
Read more