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Request our Free Cedar Rapids, Hiawatha, Marion and Robins area Relocation Package. It's packed full of useful and important information about the Cedar Rapids, Hiawatha, Marion and Robins, Iowa area. Don't move here without it! Are you new to the area? Request our FREE Cedar Rapids, Hiawatha, Marion and Robins area package of relocation information. It's our job to help! There's no obligation, and we promise to respond quickly... 
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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| Q |
What does "contingency" mean in real estate?
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| 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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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 INFO@GHST.COM
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