According to keepingcurrentmatters.com, many buyers are waiting for mortgage rates to drop before purchasing a home. While experts predict a decline, rates are likely to remain between 6.5% and 7% rather than falling below 6% as previously expected. If you're delaying your home purchase in hopes of significantly lower rates, you may be waiting longer than anticipated.
Alternative Financing Options to Consider
Instead of waiting, exploring creative financing options could help make homeownership more affordable now. Here are three strategies to discuss with your lender:
Mortgage Buydowns – By paying an upfront fee, you can lower your interest rate for a set period, reducing your monthly payments early on. Many first-time buyers are negotiating buydowns with sellers to offset higher rates.
Adjustable-Rate Mortgages (ARMs) – ARMs start with a lower interest rate than fixed-rate loans, making them a smart choice if you plan to refinance later. Unlike the risky ARMs of the early 2000s, today’s versions require buyers to qualify at higher potential payments, reducing financial risk.
Assumable Mortgages – Some buyers can take over a seller’s existing loan, including its lower rate. With over 11 million homes qualifying for this option, it’s worth considering if you're looking for a more favorable rate.
If you're ready to explore homeownership despite current mortgage rates, reach out to the Benson Group today to discuss your options.
Source: keepingcurrentmatters.com
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