Discover the benefits of buying down a home loan interest rate

With the recent significant spike in home loan interest rates along with the highly probable additional home loan interest rate increases through the remainder of 2022, it's important to understand the impact of higher borrowing costs affecting the real estate market velocity and market values.

* When interest rates rise, some people will simply not be able to afford to buy many homes at their current prices. When a seller considers a price reduction to help 'match' the monthly mortgage payments of lower rates, this is how to adjust:

- A 6% mortgage rate monthly payment is equal to a mortgage payment with a 5% rate when the asking price is reduced by roughly 8.25%.

- A 6% mortgage rate monthly payment is equal to a mortgage payment with a 4% rate when the asking price is reduced by roughly 16.25%.

* Many buyers who for the past months approached a listing almost certain they would have to bid over the asking price, may now not encounter as much competition (and/or a seller/agent with a less aggressive asking price)...combined, these two factors may offset what might have been a higher selling price to offset higher borrowing costs.

Remember, if a home price has risen 20% in the past year, a 10% price reduction erodes 12% of that 20% gain.

DISCOVER THE BENEFITS OF BUYING DOWN A HOME LOAN INTEREST RATE TO SELL YOUR HOME FOR TOP DOLLAR...Click here to?READ MORE