What Assistance is Available to Buyers Now?
Navigating Mortgage Options: How to Ease the Impact of High Interest Rates
Last week, we had the pleasure of speaking with Debbie Bennett from Cross Country Mortgage, and we're thrilled to have her back to address more of your burning questions about lending. Today's question tackles a concern many prospective homebuyers face: How can buyers mitigate the effects of high-interest rates in the current market? Debbie provides valuable insights into various programs and strategies available to alleviate this challenge.
For starters, Debbie highlights the availability of programs tailored to first-time homebuyers, including grant programs and down payment assistance initiatives. These resources not only assist buyers in securing funds for their home purchase but also offer the option to use grant money to lower the interest rate. By leveraging grant funds in this manner, buyers can reduce their monthly payments and overall interest costs, providing some relief in a high-interest rate environment.
Discount Points
Additionally, Debbie discusses alternative options for individuals who may not qualify for income-based assistance programs due to higher earnings. In such cases, borrowers can opt to pay for a permanent reduction in the interest rate using discount points. This strategy enables borrowers to secure a lower interest rate for the entire duration of the loan, offering long-term savings and financial stability.
Temporary By Downs
Furthermore, Debbie introduces the concept of a temporary buy down, known as a two-one buy down. This approach provides borrowers with a lower interest rate for an initial period, typically two to three years, gradually transitioning to the standard rate thereafter. While temporary buy downs offer short-term relief, borrowers should be mindful of potential adjustments in payments once the promotional period concludes. However, borrowers may have the option to refinance if interest rates decline, providing an opportunity to secure more favorable terms in the future.
Seek Expert Guidance
In conclusion, Raegan emphasizes the importance of exploring various mortgage options and seeking expert guidance to navigate the complexities of the lending landscape effectively. For those seeking personalized assistance, Debbie Bennett from Cross Country Mortgage comes highly recommended for her expertise and dedication to helping clients achieve their homeownership goals.
Stay tuned for more insightful discussions on lending in our upcoming videos. And remember, if you have any questions or need further assistance, don't hesitate to reach out to our team. Together, we can navigate the world of mortgages with confidence and ease!
