One of the biggest challenges that homebuyers face in today’s market is the higher interest rates. Many people are putting buying a home on hold to see if interest rates are going to come down. While five years ago we were seeing rates as low as 2 & 3%, that isn’t likely going to happen anytime soon. That’s begs the question, is waiting the best thing to do? Deb Maher Realtor is here to share some tips to help homebuyers buy a home now without waiting for interest rates to fall.

Are Interest Rates Expected to Drop?

While there have been rumors that interest rates for mortgages are expected to fall, they are likely not going to drop as low as they were five years ago. They are also not projected to drop at an alarmingly quick rate either. While they are expected to drop, it is going to be much more gradual than most people are hoping for. For those that are in the market for a home, that means you could be waiting for quite a while. This isn’t always the best decision to make for some people.

Creative Ways to Buy in a Market of High Interest Rates

Unfortunately, not everyone has the luxury of waiting years to buy a home for interest rates to come back down to earth. There are many people that need to buy a home right now. For these buyers, there are a few things you can do to help decrease the blow of high interest rates.
– Mortgage Buydowns: One solution to the high interest rate problem is a mortgage buydown. This can be helpful as buyers can pay m only to bring the interest rate down for a time. This can save you a lot of money each month on your mortgage. There are many first time homebuyers that are requesting a buydown from the sellers at the moment to help soften the blow and enable them to afford a home now rather than wait until later.
– Adjustable Rate Mortgages: Another option is an adjustable rate mortgage or ARM. These mortgages will start with a lower rate and increase with time. The hope is that you can start out now with a lower rate and the ability to get into a house and then refinance later when the rates come down to avoid the higher interest rates at the end of the loan. If you are having 2008 flashbacks, know that the ARM terms are much more stable in today’s market than they were then.
– Assumable Mortgages: This isn’t as common, but buyers can request to take over the terms of the loan that the sellers have in place right now. When you take over the seller’s loan, you inherit the rate as well.

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If you are interested in buying a home, but you aren’t sure you can afford the interest rates that you have to work with, know that Deb Maher Realtor will help you explore all of your options and get you into a home. Call us today!