For most Americans, the American dream means to finally own your own home. This is a dream that might seem unattainable to some because of the high interest rates that we are seeing at the moment. It is important to remember that there are options even if there are higher interest rates than you would like. While some people might be able to weather the storm and wait for interest rates to come down, that isn’t always an option for others. The Tina Peterson Team is here to talk about some of the creative ways that you can still buy a home without waiting for mortgage rates to come back down to earth.
How Much Are Rates Estimated to Come Down?
There are whisperings of mortgage rates coming down, but not quickly. A few years ago, we were enjoying record low mortgage rates in the US. Unfortunately, they aren’t expected to fall that low again anytime soon. In fact, the fall for these rates might be a lot slower than most people would like.
How to Buy a Home with High Interest Rates
Even though the interest rates for purchasing a home are higher than we would like right now, that doesn’t mean that you can’t buy a home. Here are some creative solutions to this problem:
- Mortgage Buydowns: A common way to purchase a home with a lower interest rate upfront is to buydown the interest rate. This is a common practice for those that need to have lower rates and are interested in saving money on their mortgage each month. You can request that the seller buys down the rate in negotiations as well.
- Adjustable Rate Mortgages: You can also look into an adjustable rate mortgage or ARM to help you with your mortgage payment up front. This means that you will have a lower interest rate in the beginning with a rate that will increase over time throughout the loan repayment period. The hope would be that you would get a lower rate upfront and when the rate starts to rise, you can refinance as the rates fall across the board. These loans aren’t as risky as they once were.
- Assumable Mortgages: Another option is to take over the seller’s existing loan. This means that you would get the rate that they are working with as well. You will need to check and make sure that the home you’re purchasing qualifies for this option.
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If you are in the market for a home and don’t have the luxury of waiting for interest rates to come down, you can turn to The Tina Peterson Team to help you look into different options that could make purchasing a home affordable for you. We will help you find the right home at the right price so that you can live the American dream. Call us today!