Sellers are Offering WHAT?! | December 2022 Market Update
Everybody wants to know all about the market and about interest rates. Over the past month, interest rates have been fluctuating anywhere between 5.99 to 7%, and they are changing every single day. We are getting daily updates for our lenders, so you can message us at any time and we will let you know what they are today! Of course, rates are always based on your credit, or the type of loan you are getting so they may vary. Something a lot of sellers are currently offering is a two-for-one buy-down program. So what this is, let's just say that you get locked in and your rate that day is 7%, with this program the first year, your interest rate would be 5%, and then the second year it would be 6%. And then after that, it goes back up to 7%. So if you're locked into 7%, you're buying a $300,000 house your first year, you're going to be saving almost $400 a month your first year of payment with that reduced interest rate. In the second year, you're going to be saving almost $200 off your monthly mortgage payment. The best part? You can refinance at any time in those 2 years if the rates drop! So how is the market doing? Well, six months ago, buyers were paying 20,000, 30,000 over the asking price. Well, today buyers can get a house at the asking price, possibly a little bit below. And a lot of sellers are more willing to help with closing costs, do repairs, pay for the title policy, or offer the two-for-one buy-down program. So it's really a good time to buy the market is definitely starting to balance out, which is really good for buyers!