ARM Your Buyer For Success! The average homebuyer will only live in their home for less than 7 years. Think about a 7 or 10 year fixed rate. Your buyer can still be in the 3’s!
Does the Seller Get the Point? If they are stuck on a 30 year fixed, ask the seller to pay points on your buyers mortgage to get the lower rate. Best part is, the buyer gets the tax deduction!
Matthew Graham of MBS Live said it best, "I know the emotions that tend to accompany times like this can border on overwhelming. If the perspective helps, try to look at your options in terms of payments and costs instead of rates themselves. If you're a consumer, understand that your loan originator is actually every bit as traumatized by this week as anyone, and that no one saw a move quite this big happening quite this fast. Work together to quickly examine what the options are and assess the trade-offs between scenarios.
Look at different terms, different loan types, different levels of buydown (contrary to misguided popular belief, "points" are not a bad thing. Just understand that they amount to a choice between paying interest now or later). Some borrowers may want to pay more closing costs right now in order to get to the payment they can afford. Ultimately it's your choice as to what works best for you, but the message is that we're all in this together, and we're all ultimately working toward the same goals."
So, keep calm and carry on!
Doug
Doug Huhn is the owner of Bridgepoint Mortgage, LLC (www.bridgepointmortgage.com) and blogger of finance trends. Doug was raised in New Jersey and attended University of Hartford in Connecticut. Prior to founding Bridgepoint, Mr. Huhn was a top-producing mortgage consultant with some of the nation’s largest banks. Doug resides in Lehigh Valley, enjoying the close proximity to Philadelphia and New York City. He also enjoys spending time with his fiancée, a Lieutenant in the US Air Force, and their dog Tye.
Comments(0)