Mortgage News Abound...
On this bonus February day we’re going to focus on financing and mortgages. There are several hot topics in the mortgage world so we’ll hit a few this month including Reverse Mortgages, Refinancing Specials, Free Appraisals, FHA Mortgage Insurance, permanent seller buydowns, and my system.
The trick to higher rates is being creative enough to make things happen and allow folks to buy and sell houses when necessary without being too creative where we create additional risk and set ourselves up for problems further down the road.
The creative tools I’ve been using include:
Reverse Mortgages,
Free Appraisals,
Lower FHA Insurance Premiums,
Permanent Seller Buydowns,
Temporary Buydowns
My Business Model.
Reverse Mortgages can be a great tool for both accessing equity but also for purchasing. The FHA has made these loans attractive in many instances for homeowners age 62+. The higher interest rate may lower your “accessible” loan amount but it doesn’t change your monthly payment, because there is no monthly payment! Use the Reverse to: A. access a portion of your home equity, B. use the income tax free, and C. eliminate monthly mortgage payments! I have earned the SRES designation as well. This is the Senior Real Estate Specialist designation. I’m happy to discuss your next phase of living whether that means moving closer to family, moving to additional services, or adding a few dream houses to your portfolio!
Free Appraisal- for a limited time, if the buyer negotiates a 1-0 buydown with the seller, I am able to offer a $600 credit toward the appraisal. Lower payment for 12 months and free appraisal- not bad!
Quick reminder that FHA Mortgage Insurance Premiums decreased last year. With lower FHA rates and lower mortgage premiums, let’s peek at FHA rates if your situation warrants.
Temporary buydowns have been helpful and used in many instances. However, don’t overlook permanent buydowns. Especially in the Luxury Market, a modest permanent buydown can have the same effect as a huge price reduction. Sellers are more open to talking about a $30,000 rate buydown for a buyer as opposed to a $150,000 price reduction- shockingly enough. But… this can have the same effect on your payment! Let’s look.
Did I poopoo Temporary Buydowns. Nah! They are still helpful and available. They are always worth a look and are deemed less risky than Adjustable Rate Mortgages because there is a known 30 year fixed rate and the buyer must qualify based on that 30 year fixed rate!
The best deal in town? Use me to sell your house, represent your purchase, and do your mortgage! Why? The short story is I’m able to do your loan with a non-commission interest rate that is likely to save you hundreds per month- depending on your loan amount. I transfer just a portion of what my mortgage commission would’ve been to your listing and we all win. You save monthly for the life of the loan with a dramatically discounted “buydown”! I may make less on the mortgage but being able to represent you on 3 aspects of the transaction is well worth it. We all win and sing and dance with dollar bills in our pockets! You should try it!
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