|
Many people get out of the home buying market when interest rates go up. This can be a mistake. Some good mortgage deals can become available when lenders are competing for new business and sellers are competing within a smaller buyer pool. You have to know how to keep the costs down in order to counter the higher interest rates.
A good trick is a buy down. a buy down is when you pay a fee is paid to buy down the interest rate. In a soft market a seller may be interested in paying all or part of the buy down for you. You could also ask the seller to pay some or all of your closing costs lowering the amount of cash needed at closing. The fees paid by the seller can often be written off by the buyer. Consult a tax advisor to make sure.
If the market is soft due to high rates, you may be able to use the price to save money on a house through skillful negotiating. The McNabs are experts at negotiating and can help you in this area. Lower prices mean lower loan amounts, so don't be discouraged by higher rates use them to your advantage.
|
