These mortgage hacks will help you buy a home despite rising rates.
Are you thinking about buying a home and concerned that interest rates are higher? Do you own a home and are curious how you can pay it off faster? Today I’ll share some mortgage hacks to help you purchase a property despite rising rates.
One way to save a lot of money is to do a 15-year mortgage. You save interest over the life of the loan, and you build equity in the home faster.
Another option is to buy down the interest rate. To buy down the rate by one point, it typically costs 1% of the loan amount. In this market, we might even be able to negotiate that the seller pays. There’s also a 2-1 buydown. For two points, you can buy down the rate by 2% for the first year, and then it increases by 1% the next year. Then it will go to the normal rate for the remaining term of the loan. It’s best to talk to a mortgage expert for other ideas as well.
“In this market, we might be able to negotiate that the seller buy down your rate.”
Do you have an existing home and are curious how you can pay it off faster? If you make one extra payment direct to principal every year, you will pay off your 30-year mortgage in 24 years. If you do it every quarter, you will pay off your 30-year mortgage in 19 years. You can also make biweekly payments, meaning you make 26 half payments instead of making 12 full payments, and you’ll shorten the mortgage term from 30 years to 25.6 years.
I would recommend doing any of those that you can afford, so you can pay off your home faster. If you have any questions on real estate or anything else, please don’t hesitate to contact me at the number below.
