I want to buy a home. But the interest rates make my payments higher than I want to spend.
It is true. Interest rates are no longer under 3%. They are typically over 7% now. If you have a good memory, you will remember rates over 13% in years gone by. I hope we do not hit those interest rates again.
There are several options to consider as you look to buy a home to offset the higher interest rates today. The first one that comes to mind is to ask the seller to buy down your interest rate. This can be accomplished by asking them to pay $5,000 to $10,000 towards lowering your interest rate instead of reducing their purchase price. Check with your lender to confirm. I think you will find that buying your interest rate will reduce your monthly payment more than reducing the purchase price. It is basically the same for the seller to give you a concession at closing of $10,000 as it is to reduce his asking price by the same amount. Most sellers will consider $5,000 to $10,000 less to sell their home in today’s market.
There are other options to consider if you are looking for ways to purchase a home now. Call me to get started and we will see what works best for you.