CHARLOTTE – As many know, interest rates are at some of the highest points since the early 2000’s.  Most all economists believe though that the interest rates have hit a ceiling and will begin to drop as we head into next year and beyond.  With that being said, many lenders have taken action to help borrowers overcome the current high rates and still make purchasing a home affordable.  The great news is that negotiating with sellers is more than back, and it seems the power has shifted to the buyers.

With that being said, one of the most efficient methods would be to ask the seller for “seller concessions” (commonly known as seller-paid closing costs).  It would be a great idea to get with your lender prior to submitting an offer to put a plan together as to how much seller-paid closing costs is allowed, and also how it can impact the interest rate.  Those funds can then be used to buy down the interest rate 1-1.5%, which can make a large impact on the interest rate.  In addition, there is a program called a 2-1 buydown, which can be utilized for a more “short-term plan/savings,” in which the sellers will agree to pay a seller concession, which lowers your rate by 2% in year 1, 1% in year 2, and then returns to market rate in year 3.  Either strategy can be very beneficial in this market, depending on your plans for the future.

For all lending questions, please do not hesitate to call/text/email (brandon.wolf@primisbank.com / (704) 430-6138).