Though mortgage rates have been trending downward recently, prospective homebuyers still face challenges in the current housing market. To offer advice on how to navigate these issues, Melissa Cohn, Regional Vice President at William Raveis Mortgage, appears with Wealth! host Brad Smith.
For more expert insights and the latest market trends, click here to watch this full episode of Wealth.
This post was written by Angel Smith
Video Transcript
And those looking for a new home have a list and they’re checking it twice.
They’re trying to decide how much time they’ll spend on the open house this weekend.
What advice would you give to home buyers?
Well, you know, I think it’s good to look for opportunities. Obviously, if it’s a property that’s been on the market for a long time, you’re going to have more room to negotiate.
If you are looking at a property where the mortgage you are looking to get is a conforming loan of less than 766,000.
Also, if the property has been on the market for a while, consider asking the seller or broker to offer you a temporary price reduction to take advantage of a lower interest rate.
Now, as you probably know, a temporary buydown means your interest rate will be 1 to 2 percent lower for the first year or two.
So if the average interest rate today is 6-7-8% and you have a 21% buydown that the seller can afford, you could borrow at 4-7-8% for the first year.
In other words, it makes you feel like you’ve already won the war.
Wow, that’s great advice, Melissa Cohen, regional vice president at William Lavis Mortgage.
Glad to have you back with us on wealth.
appreciate.