This is a really detailed episode about a new interactive software tool. Nicole explains here. At the end of this post you will have a link for the interactive view of this tool she discusses. Here's a bit of what is covered in this episode.
Interest rates and home prices have gone up. We know that. And not only is it a question of affordability, but now it's also a buyer's discernment on whether or not that home or buying now is the right choice. Sellers are feeling this. They've been on the market for longer than we are used to. We got spoiled over the last couple of years. Sellers did with very quick turn times, very quick to go under contract. And so now, even though we're nowhere near normal with less than a month of inventory, it feels slow. So I wanted to propose a couple of alternatives and actually show the differences between those alternatives and options, both for a seller who's going to market and how do they want to list their home? And as a buyer, how can I strategize the best payment option for me right now? Whether what is more, most important to me?
Is it cash to close? Is it the monthly payment? Is it the adjustment period? And then do I expect in a recessionary period that interest rates will go down because I want to start here before I get into the matrix that I'm showing you. This is a little bit of a different video that we typically send out on Wednesdays, because I want to give you a tool. This tool is clickable. You can actually open it up rummage around and look at the alternatives and request a strategy session so that we can set this up for your listing or for your specific buyer parameters. But I want to talk first just for a second on ARM, because that option is not going to be described here. I'm going to go over going through and buying a home with 10% down, buying a home capitalizing on a two, one buy down capitalizing on maybe a seller credit for a permanent buy down or discount points to pay, to reduce the rate, or should a seller have to reduce their price to get it to move.
But what I don't show is ARMs simply because there are four columns and not five. So there you have it, but I do want to say that arms are going to work very similar. In fact, for the two, one buy down, category, I used the model within this tool for an ARM. So we could switch this based on the kind of ARM that you're looking at, whether it's a five-year, seven-year, 10-year ARM, and then what the parameters are for the movement of that ARM. The one risk that I want to present with ARMs, that the two, one buy down protects you against is what if, what if rates don't go down. The third number on an ARM talks about what is the maximum that ARM can go up. And a lot of times it's got a five in it or a four. So if today's interest rate for you for that ARM is four and a half, and the last number on your ARM parameters is a five. That means that that loan could go up to nine and a half percent. Would that wreck your budget? We're all counting on a recession and on lower interest rates, but do you need a plan B? So let's talk about these four options and consider a two, one, a two, one buy-down option instead of an ARM. They go hand in hand and they can trade out for one another.
Want to access the interactive software? FOLLOW THIS LINK: https://bit.ly/3ucAWLj
Nicole will be narrating it with the same information in this episode, but you'll be able to click some of the items to get more details as you follow along. Any questions, please call her: 303-214-6393
Nicole Rueth, SVPThe Rueth Team750 W Hampden Avenue, Suite 500 Englewood, CO 80110303-214-6393www.TheRuethTeam.comConnect on social media: Follow me on FB: https://www.facebook.com/theruethteam/Twitter: https://twitter.com/nicoleruethLinkedin: https://www.linkedin.com/company/the-rueth-team-fairway-independent-mortgage/YouTube Channel: https://www.youtube.com/channel/UCPMdb94tUNMMsUTgdWRMDKwNicole Rueth (NMLS 239840) is licensed to practice on behalf of OneTrust Home Loans (NMLS 46375) in the states listed below. For full compliance verbiage, visit theruethteam.com/compliance/.AZ, CA, CO, FL, ID, IL, IN, KS, MI, MN, MS, MO, MT, NE, NM, NC, OK, OR, TN, TX, UT, VA, WA, WI, WY.
