Ways to Reduce the Cost of Buying a Home - by Oyelr Hines of Coldwell Banker

 

You don’t have to let the rising interest rates keep you from buying a home now if you’re ready. You can take steps to make it easier to get an affordable loan. For example, make sure you have excellent credit to get the best interest rates. Come up with a larger down payment to reduce the interest rate on your mortgage. Because you’re assuming more risk, lenders are often willing to negotiate.

Fewer buyers are willing to waive real estate contingencies, such as not having a home inspection. Sellers also set up contingencies, such as having financing in place before putting in an offer. All these real estate contingencies limited the pool of buyers competing for the same property. With the loss of these contract contingencies, it has leveled the field for all buyers.

You also still have the option of paying mortgage points to lower the rate. Lenders often offer the option of paying these mortgage points to make loans more affordable. For each point you pay to the lender, the interest rate goes down by one percent. If you plan to live in the home for a long time, this extra cost may pay off in the long run.

If you’re a first-time buyer, you have access to various first-time buyer programs. These programs provide you with assistance for your down payment. Your real estate agent can point you toward local, state, and federal programs that will help make your home more affordable.

Home buyers can take advantage of the changes in the market if they are willing to adjust their expectations. You may need to consider living in another area or a smaller home if you want to buy now. Your real estate agent can help you find an affordable home that will suit your needs.

We're Here to Help

The key to buying is to be prepared and know which tools you want to utilize to make your home more affordable. We'd love to help you decide if now is the time to begin the home buying process.

 

For more details, Contact us today

 

Oyler Hines of Coldwell Banker
7813 Ted Gregory Lane, Montgomery OH 45242
513-547-2997     5135472997
https://www.oylerhines.com/

 

What Will Home Affordability Look Like in 2023? Article by Oyler Hines of Coldwell Banker

 

 

If all goes to plan, the increase in interest rates could curb inflation quickly, and a result of that could include some improvements in overall home affordability for those who are looking to buy a home. There’s no way to know what could happen, but here’s what many expect:

• • Interest rates: If you wait until 2023, interest rates on most mortgage loans will likely be higher. That means you may spend more to buy the home when it comes to the loan costs. That doesn’t mean those prices are going to be significantly higher, but it could mean a few percentage points.
    
  •  Home inventory: While there’s no way to say you’ll never be outbid again, the chances are lower in the next year as inventory becomes more predictable in most areas. With more inventory available, there are also fewer reasons that home values will skyrocket in those bidding wars. Higher inventory leads to better access to buying what you want.
  •   Home prices: It’s unlikely there will be a significant housing value drop in the coming year, but home values may stop growing as quickly. There is some evidence of currently listed homes seeing price reductions right now, which could mean lower prices in some areas.

  • Will You Be Able to Afford More House Next Year, Though?

    There’s no crystal ball to tell us the future of what’s to come. If you can afford to buy a home today that fits your needs and is within your budget, buy now. You may be better off buying now instead of waiting for the unpredictable real estate market of 2023.

    More so, inflation is a factor. Though it is unlikely that you will find home prices rising due to inflation, you are likely to find it a bigger pinch on your budget.

    With mortgage rates on the rise, there’s no doubt that buying now if you qualify for a lower interest rate is the better option overall. It will save you money to secure even an interest rate that's even a fraction lower this year than next year. For example, the monthly payment on a 30-year fixed rate loan at 2.99% could be $1,073, while it’s $1,184 on a 3.99% loan.

    If you can afford to buy a home now and have the financing to do so, there's no real benefit to buying next year. Prices aren't likely to be much lower, though inventory may be a bit better. If you're able to find your dream home, it may be time to make your move now instead of waiting.

    Get the Help You Need

    If you’re frustrated with the lack of access to homes for sale, talk to your agent about it. There is improvement in new listings, which could give you the perfect opportunity to buy what you want at the lowest interest rates for the foreseeable future. On the other hand, waiting too long doesn't seem to have the same benefits, and it could end up costing you.

    Let's discuss your situation today so that you can start your home search with confidence.

     

    For more details Contact today

     

    Oyler Hines of Coldwell Banker
    7813 Ted Gregory Lane, Montgomery OH 45242
    513-547-2997     5135472997
    https://www.oylerhines.com/