Well, getting a lower mortgage rate starts with having excellent credit, low debt, good income.
But, there have always been ways to 'buy' down your rate. This is nothing new. There have always been adjustable mortgage rates, nope, nothing new here either.
Nowadays they are calling it the 3-2-1 or some just the 2-1. Depending on the number of years til you hit the actual fixed mortgage rate. See picture below for a brief example of the 3-2-1.
This BIG difference, right now, is that Sellers are willing to help buyers, more frequently than in previous years, with the costs to get a lower rate.
Something to listen to when discussing these options with your lender is how much the final payment will be if you do an adjustable type mortgage. AND, if they say 'just refinance it later' you're going to pay for that refi, plus you're betting on rates dropping to a more comfortable amount for you and your family.
Not going to lie, I bought a home on my own for the first time and used a 2nd that was a dicey move. But, I know myself, I paid it off much sooner than necessary, and, that was my plan all along.
In my humble opinion (IMHO) I'd always suggest doing an initial rate buy down over any type of adjustable. If we're hovering at 6% and that doesn't suit your budget, have your lender work out the costs for buying it down to a comfortable rates. OR, oh my goodness, buy a home that is less expensive. The home you think will be your forever home, that has to be just right from the get-go? It won't be and it doesn't need to be. Things change, styles change, women's' moods change, LOL. Buy what you can afford.
And, lookie here! This is the newest listing my business partner has gotten on market for one of our clients. It's a beauty! Maybe this one is just what you are looking for! SUPER commuter friendly and in excellent condition!
Any questions, about anything, give us a shout!
Lauren Witz Greber ~ (661) 313-5470
Leslie Babikan ~ (661) 312-3669
No comments:
Post a Comment