Hook - Waiting to buy until interest rates go down is a terrible idea - here’s why!


Problem - Interest rates are higher right now than they have been recently- let’s get some perspective

Shawna  - last 15 years we have had BELOW average interest rates - we are now slightly above average - we may not see interest rates in the 2’s and 3’s again


Let’s talk about what we saw when interest rates were at an all time low - OVER list price, waived inspections, appraisal gap coverage, free netflix subscriptions for life. . . (some buyers got very creative!)


Jesse - Nobody wants to pay a higher interest rate, BUT waiting to buy may NOT be in your best interest  -> Date the Interest, Marry the House. 

Shawna - what does that even mean 

  • If you are a buyer: If you wait to purchase until interest rates come down, you will be competing with many more buyers than you are right now. Which means frequent multiple offers, waived inspections, and prices of homes will go UP! Remember all the memes in 2020 of purchasing a home? Yeah, no one liked buying a home in that market.
    • If you can negotiate (lower purchase price, seller paid closing costs, inspections and/or fixes) and get the home NOW for less, and have a higher interest rate, there are solutions for you, which we will go over in a little bit (mini-hook)


Steven - There are ways to make your mortgage more affordable in the short term - with the higher interest rates -

  • 2/1 buydown - we will negotiate seller paid closing cost to help buy down your rate - it goes down 2 points the first year, 1 point the second year and “normal” the 3rd year- the goal being that you will refinance sometime in the next 2 years, when rates go down. In addition, the money used to buy down your rate will not be lost when you refinance, it will go towards your principal. 
  • Some lenders are offering a 1 time refinance with no cost.
    • “How does refinancing work?” 


Conclusion - if you want to buy a home, don’t wait, until rates drop, because that’s what everyone else will do! Buy NOW, get the home for lower and refinance when interest rates go back down! 


$400,000 at 4% = $1,909

$400,000 at 7.35% = $2,762      $400,000 at 6.5% = $2,528


Hypothetically if prices go up. . . $440,000 at 6.5% = $2,781


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