Strategies To Combat Current Interest Rates

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CHARLOTTE – As many know, interest rates are at some of the highest points since the early 2000’s.  Most all economists believe though that the interest rates have hit a ceiling and will begin to drop as we head into next year and beyond.  With that being said, many lenders have taken action to help borrowers overcome the current high rates and still make purchasing a home affordable.  The great news is that negotiating with sellers is more than back, and it seems the power has shifted to the buyers.

With that being said, one of the most efficient methods would be to ask the seller for “seller concessions” (commonly known as seller-paid closing costs).  It would be a great idea to get with your lender prior to submitting an offer to put a plan together as to how much seller-paid closing costs is allowed, and also how it can impact the interest rate.  Those funds can then be used to buy down the interest rate 1-1.5%, which can make a large impact on the interest rate.  In addition, there is a program called a 2-1 buydown, which can be utilized for a more “short-term plan/savings,” in which the sellers will agree to pay a seller concession, which lowers your rate by 2% in year 1, 1% in year 2, and then returns to market rate in year 3.  Either strategy can be very beneficial in this market, depending on your plans for the future.

For all lending questions, please do not hesitate to call/text/email ( / (704) 430-6138).

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Brandon Wolf
Brandon was born and raised in the Mint Hill area and graduated from Independence High School. He went on to play college baseball at Wingate University. Brandon met his wife at Independence HS, dated all through HS, college and got married right after college (they have a little boy due in September). Brandon has been a Mortgage Loan Officer, in Mint Hill, for over 7 years. "Mint Hill is more than the place I work, it's been my home. I grew up, played baseball, met my wife. I truly love helping people get mortgages in this town I have always called HOME" says Brandon.