real estate articles to share

Tell your clients: It could still be the right time to buy

Bethany RamosFirst-Time Homebuyer, Home Buying, Homeowners, Industry Professionals, Mortgage Rates, News, Realtors

Share this post:
Reading Time: 2 minutes

With inflation and mortgage rates on the rise, many prospective homebuyers are wondering if now is still a good time to buy.

Rates Are Only One Consideration When It Comes to Buying a House.

That’s what financial advisor, Cory J. Phillips has to say to clients concerned with rising rates. Although we’re seeing an increase, rates are still in a normal range when looking at data over the past 30 years.  And there are other factors to look at when deciding if now is the right time to buy.

Since 1985, rent prices have risen at a rate of more than four times that of the median income, forcing renters to downgrade or spend a larger portion of their income on housing. Buying allows homeowners to build equity and often save money, as many renters see their monthly rent payments climbing faster than they have in decades. The buyer’s personal financial situation and future goals are also important to weigh. How could waiting impact their ability to buy, or what kind of home they can afford?

Buying a house doesn’t have to be hard. Your clients can use our free app to make the mortgage process fast and easy.

Clients Have the Power to Protect Themselves from Rising Rates 

We’ve seen the Federal Reserve increase interest rates five times since March 2022, and further increases could be on the horizon. While this may feel like a scary time for homebuyers, the good news is, there are several options available to make buying more affordable and less risky.

Locking Their Rate

Mortgage rate locks allow homebuyers to pay a small fee to secure their rate while they continue to shop for or build their dream home. Once the rate is locked, buyers are protected from rising rates for the duration of their lock period – lock periods range from 30 to 360 days. Rate locks including a float-down option allow buyers to float down to a lower rate if a better one becomes available during their lock period.

Taking Advantage of a Buydown

A buydown provides the opportunity for a borrower to pay discount points, a one-time only fee, upfront in exchange for a lower interest rate for a period of the loan. This could afford buyers the chance to buy before rates rise further and save with lower mortgage payments for the first years of the loan.

With the possibility of additional rate hikes on the way, the buydown method can be helpful for buyers looking to hedge against rates and protect themselves financially.

We offer buydown programs and rate locks for up to 360 days. Your clients can contact us to protect themselves from rising rates.

When It’s Time to Buy – How About a 100-Percent Commitment to Closing On-Time?

It’s not just a goal. It’s a core value. We can close quickly because we work on many parts of the loan in-house, speeding it along from processing to underwriting to closing to funding. Partner with a Cornerstone loan officer to support you and your clients on their journey home.

For educational purposes only. Please contact your qualified professional for specific guidance.

Sources deemed reliable but not guaranteed.

Share this post: