Interest rates are high and housing supply is low, making this a tough housing market but one that’s not impossible to navigate, experts say.
There are still many ways to maximize a budget if you’re a buyer or ensure you earn top dollar and trim your costs if you’re a seller. Strategies include knowing what fees might be negotiable, what home features to invest in, what kind of lender to look for, what types of mortgages are available and what tax benefits there are to selling and buying another home, experts say.
Can I still get a 3% mortgage rate?
Yes, if a seller has a so-called assumable mortgage at a lower rate, you can take it over.
Assumable mortgages are generally those insured by the Federal Housing Administration (FHA) or backed by the Department of Veterans Affairs (VA) or United States Department of Agriculture (USDA).
Learn more: Best mortgage lenders
About 12 million, or 23% of, active mortgages are assumable, according to data and technology firm Intercontinental Exchange. Of those, 7.2 million, or 14%, are assumable at interest rates below 4%, which can save buyers thousands of dollars and generate more bids for sellers. Current loan rates hover around 6-7%.
On a $400,000 loan with a 7% interest rate, the monthly principal and interest payment comes out to about $2,660. With a 3% rate, that payment drops to $1,686. That’s nearly a thousand-dollar difference in monthly housing costs.
These deals also don’t require an appraisal, which can save buyers hundreds…
