5 ways to take advantage of today’s housing market
High mortgage interest rates are keeping buyers on the sidelines, making sellers anxious to find a buyer and willing to offer attractive concessions and discounts we haven’t seen in years. Yet many buyers are waiting for interest rates to fall before jumping back into the market, which by simple supply and demand economics will push housing prices up again.
In recent months, we have seen sellers offer temporary rate buydowns, multiple price reductions, and the maximum concessions allowed by a seller. This was unheard of in the prior years of low interest rates and high buyer competition. Getting a good deal on a home doesn’t necessarily start and end with an interest rate and purchase price. Seller concessions can go a long way to making a home purchase a good deal in a high interest rate market. Here are five ways to take advantage of today’s housing market.
- Ask your lender what seller concessions you can request based on your loan type, property use (owner occupied or investment), and purchase price. Decide which concessions are best for you considering your monthly payment, down payment, and acquisition cost.
- Meet with your lender and real estate agent together and come up with a buying strategy. Have your agent negotiate the purchase price and concession options as a package. Since this is a financial transaction, your agent and lender should work together to help you come up with the best offer. It’s no longer just about purchase price.
- Consider new construction properties. Many builders are aware of these concessions and are anxious to sell their properties. Unlike the past few years, there are new construction properties ready to move in now or close to completion, so wait time is minimal.
- Learn about the temporary rate buydown options from your loan officer. These seller concessions not help with your monthly mortgage payment for two to three years while rates are high, any excess funds can be used when you refinance. When most buyers shy away from uncertainty, smart buyers take advantage of these opportunities by understanding what many buyers don’t know.
- Take advantage of Intercap’s FREEFI offer. This gives you the ability to refinance your property by the end of March, 2025 without paying the lender fees. As many of today’s buyers anticipate refinancing once interest rates drop, Intercap won’t charge the lending fees at the refi. This is another great savings opportunity you only see during a buyer’s market like this.
Intercap Lending offers FREEFI
It’s a REFI without the lender fees
Buy a home in 2023 and get a no-lender-fees refinance through March 2025. Apply now or contact an Intercap Loan Officer for conditions and details.
Right now could be the perfect time to buy
Home buying competition is a ghost town right now. Home sellers are highly motivated and offering price cuts, closing cost incentives, and rate buydown options. The power is in the hands of the home buyer.
Understandably, the hesitation currently is the interest rate. But with such a strong buyer’s market, imagine if the interest rate was not an issue.
What about the interest rate?
Intercap Lending offers various rate buydown options, where the buyer uses seller funds to buydown their interest rate. A temporary rate buydown can be the difference that puts your dream home within reach.
Combine a rate buydown with a Freefi
With a rate buydown, for the first year of the mortgage, the borrower’s monthly payment is based off an interest rate that is 2% lower than the note rate. For the second year of the mortgage, the monthly payment is based off an interest rate that is 1% lower than the note rate. In year three, borrowers return to the full note rate and corresponding payment for the remainder of the mortgage term.
If you combine that with a Freefi, and refinance within the first 2 years as rates are expected to drop, you could end up in the home of your dreams for around the same monthly payment you currently make on your mortgage or rent.
Reach out to you Intercap loan officer and see what options will best fit your situation!
Terms and conditions apply. Lender fees include underwriting, processing, and application fees, if any, and such fees will be waived by Intercap Lending Inc. when a borrower closes on an initial refinance of a qualifying loan with Intercap Lending Inc. on or before March 31, 2025. Qualifying loans are purchase loans closed by Intercap Lending Inc. by March 31, 2023, and do not include brokered loans. All qualifying conditions for a refinance, including credit score, must be met. Third-party fees still apply.
Stress Free Home Loans
Buying a home shouldn’t be stressful. On-time closings, constant communication, e-signatures, and mobile technology that’s easy to use are all standard at Intercap Lending. Then we exceed your expectations with a level of personal service that will blow you away.