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Real Estate Tips
Financing Your Home >When Interest Rates Rise

Many people fall out of the home buying market when interest rates start to go up. This is often a mistake. Many of the best mortgages deals become available when lenders are competing for new business and sellers are competing within a smaller buyer pool. You just have to know how to keep the costs down in order to counter the higher interest rates.

One of the best tricks is the buy-down. In a buy-down, a fee is paid at the closing to get a lower interest rate. In a soft market, an anxious seller may be lured into to paying all or part of the buy-down. Another approach is to get the seller to pay some of closing costs, thus lowering the amount of cash a buyer needs to close. Frequently the seller's costs can be used as a write-off by the buyer. Always consult with your tax advisor if you are considering such an arrangement.

If the market is softening due to rising or higher rates, the price itself becomes an area where a buyer may be able to save a lot of money on a house through skillful negotiating. Lower prices mean lower loan amounts, so don't be discouraged by higher rates--use them to your advantage.

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Real Estate Trivia
Q 
What does "contingency" mean in real estate?

A 
A contingency is a specified event that must take place before a home purchase contract is binding; for example, a sale can be said to be "contingent upon the sale of the buyer's current residence."
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The Graf Home Selling Team, REALTOR®, real estate agent and broker for Cedar Rapids, Hiawatha, Marion and Robins, Iowa home listings, property and land for sale - NUMBER1EXPERT

Mike and Teri Graf
Graf Home Selling Team

5408 Blairs Forest Way NE
Cedar Rapids, IA 52402
Primary Phone: 319-491-0000
Mike's Cell: 319-981-3702
Teri's Cell: 319-981-1748
Fax: 319-362-0850
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Welcome! View the Graf Home Selling Team, A TEAM THAT HAS EARNED DIAMOND NUMBER ONE EXPERT RECOGNITION!!. Here You Can Find Great Information on Cedar Rapids, Hiawatha, Marion, Robins, and surrounding area homes for sale! LISTEN TO US LIVE EVERY OTHER FRIDAY ON WMT AM 600 and remember, SOLD in 120 days or WE BUY IT!! WE ARE THE REAL DEAL! EXPERIENCE MATTERS, PROVEN RESULTS. CALL US TODAY!

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