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You Don’t Actually Need Mortgage Rates to Fall to Get a Lower Rate
A lot of buyers seem to be waiting for mortgage rates to fall before they make a move, but the market rate isn’t necessarily the only option.
There are a few ways buyers can potentially get a lower effective rate even while prevailing rates remain much higher:
• Taking over an existing assumable VA or FHA mortgage
• Using a seller-paid 2-1 buydown
• Permanently buying down the rate with discount pointsObviously, each comes with tradeoffs and they won’t work for every buyer or property. The assumable mortgage angle is especially interesting because some homeowners are still sitting on loans originated when rates were significantly lower.
This video breaks down how all three strategies work and some of the catches buyers need to consider:
Has anyone here actually used an assumption or seller-funded buydown recently? I’d be interested to hear how the numbers compared with just taking the current market rate.
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