Potential Homebuyers are Using This One Homebuying Hack to Lower Their Mortgage Rates

Potential Homebuyers are Using This One Homebuying Hack to Lower Their Mortgage Rates

Denver, Colorado, United States - November 7, 2023 —

Current real estate trends still show most of the United States is experiencing a seller’s market. However, the National Association of Realtors says existing home sales continued to decline in September. As interest rates continue to rise and limited inventory fails to match buyer demand, home prices remain higher than in previous years.

Many homebuyers are struggling to find a home they like and can afford. However, those taking advantage of one lesser-known homebuying hack can trim down some of the expenses associated with purchasing a house in the modern market.

According to home loan originator Rob Sturms of Rob’s Mortgage Loans, seller concessions are a great way for homebuyers to save money — even in a seller’s market.

With a typical seller concession, the selling homeowner agrees to contribute a certain amount of money toward the buyer's closing costs or other expenses associated with the purchase of the property. This financial assistance from the seller can make it more affordable for the buyer to purchase the property, as it reduces the upfront costs that the buyer needs to cover.

However, most buyers aren’t currently looking for a reduction in closing costs or the bottom line of their mortgage. Instead, they are looking for a way to reduce their spending on each monthly payment due to today’s high interest rates. To do this, they write a specific request in their offers that comes as rate buydowns.

Here's how a rate buydown works: First, the seller agrees to pay additional upfront costs to the lender to reduce the interest rate on the loan. This cost is paid as a lump sum at closing, while the interest rate reduction gives the buyer lower monthly payments. These buydowns can be offered permanently for the loan or temporarily for several years.

Either way, the seller gets the benefit of closing on their property while the buyer enjoys a lower interest rate. Which, according to Sturms, can make or break many home sales.

Additionally, Sturms offers this advice for anyone currently looking at purchasing a house soon: partnering with an independent mortgage broker instead of a large corporation or traditional bank lender.

“Independent mortgage brokers typically offer more competitive rates and lower fees than banks and mortgage corporations. This advantage stems from their ability to operate with reduced overhead costs, choose cost-effective marketing strategies, and allocate fewer resources towards executive salaries. As an independent mortgage broker, I consciously maintain lower commission rates, and by leveraging my flexibility to work with wholesale lenders, I can pass on these cost savings directly to the consumer.”

Current interest rates likely will not drop anytime in the near future. However, if you are willing to work with an independent mortgage broker and ask the seller for a rate buyout, chances are you can still get the house you desire for a price you can afford.

About Us: Rob's Mortgage Loans is an independent mortgage broker based in Lakewood, Colorado. He is dedicated to helping potential homeowners receive the best possible mortgage rates and options so homebuying can become a reality.

Contact Info:
Name: Rob’s Mortgage Loans
Email: Send Email
Organization: Rob’s Mortgage Loans
Website: https://robsmortgageloans.com/

Release ID: 89112403

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