Many experts say there are many reasons the process of buying a home is more expensive than in recent years. In addition to increasing home values, today\u2019s mortgage interest rates surpass the three-to-five percent rate threshold homebuyers and sellers grew accustomed to over the past decade.<\/p>\n
Instead, those fairytale interest rates have been replaced with a new reality. Seven percent isn\u2019t tragic, compared to the 18 percent interest rate<\/a> your parents may have had when they bought their first home. But as inflation continues to outpace salary increases, many would-be homeowners and first-time homebuyers feel as though they\u2019ve been priced out of the market<\/a>.<\/p>\n If you\u2019re still in it to win it and want to get into a home, you have two choices\u2014buy a resale home or build a new one.<\/p>\n If you\u2019ve looked on Zillow or Redfin lately (it\u2019s a favorite American pastime) you\u2019ll find many houses, townhomes, and lofts for sale across the southwest. By using an you can get an idea of what you can afford.<\/p>\n On each resale home listing, there may be one key to keeping it as a fav or sending it into the digital trash bin\u2014seller contributions. If the seller is willing to give you credit for an interest-rate buydown<\/a> on your home loan, it could be an advantage worth taking.<\/p>\n With a rate buydown, new homeowners can get into a house at a lower interest rate for the first three years they own it. After that, the rate adjusts back to the original higher number.<\/p>\n This can cost sellers thousands of dollars, which may lessen their ability to pay for other homebuyer requests, like recommended repairs before closing. For the buyer, it will temporarily lower the interest rate and reduce the monthly mortgage payment, often by only a few hundred dollars.<\/p>\n However, there may be other ways to make a mortgage payment more affordable. Consider looking for a lower-priced home or putting more money into the down payment to help you feel more comfortable.<\/p>\n Many of the same reasons homebuyers are reluctant to make a purchase confront sellers as well, because they too are buyers.<\/p>\n For sellers, it\u2019s hard to let go of the sweet 2.95 percent interest rate they currently have, which is unlikely to be around again anytime soon. Unless they can sell and pay for a new home in cash, they face higher costs to borrow money\u2014the new mortgage-rate norm.<\/p>\n With no upfront interest payments, buyers don\u2019t have to settle for \u201cless than\u201d [H2]<\/p>\n Despite the challenges, there is a way to navigate higher home prices and interest rates. With some planning, a little creativity, and a financial break from home builders, a new home can still be \u00a0within reach.<\/p>\n Chesmar Homes is offering a no-interest payments for 6 months for buyers who purchase a home from our Move-In Ready Collection through August 15, 2024, in any of our 90+ communities, when you finance through our preferred lender<\/a>.<\/p>\nResale homes need to give buyers a reason to buy<\/h3>\n
Most sellers don\u2019t want to give their home away<\/h3>\n