Hello Friday! In looking back at this week I want to give space to another responsive concept to the market that helps Buyers focus more and more on the house and a tiny bit less on rate sensitivity. Lenders and clients are getting better at creative solutions.
As the market works itself towards more normalcy (yes, time will tell), to date we’ve see financed buyers successfully using ARMs or interest rate buy-downs. In transactions without competition, buyers are often negotiating for sellers to pay the cost of the buy-down. These buy-downs may be the tool that helps bring buyers and sellers together on price.
This week I was introduced to Penrith’s buy-now-refinance-later plan, which allows buyers to refinance their loan within three years of purchase if rates go down, and they can do this without paying the lender admin fee on the new loan, plus their appraisal fee would be significantly reduced for the refi.
Penrith Home Loans Adam Boss gave me a good reframe in refi consideration down the road:
“A good point to make for refinancing is something I picked up from Mathew Gardner…
The old adage that rates need to be lower by 1% of your current rate to signal a refinance opportunity is no longer true.
I ran the numbers @ 700,000 loan 6% vs 5.5%
$4196.85 /mo vs $3974.52 /mo – that lowers the payment $222/mo
Penrith’s Rate protection program fits nicely with this strategy.”
If you aren’t yet connected with Penrith mortgage consultant on this – feel free to text me and I’ll make a warm introduction. 206.227.7133
And as we get further and further into 2023 I’ll have a focus in “back to basics” – as I strongly believe that is where we’ll need to be our best this year. Here to help with that every step of the way. – Laura