Rising interest rates in 2022 have been a hot topic in the real estate community. Buyers who were once pre-approved up to a certain amount with a conventional loan and competitive interest rate are now having different conversations with their lenders about how their affordability may have changed, or what other loan programs may now be a better fit. The days of a less than 3% conventional 30-year loan are behind us, at least for now, but that doesn’t mean that there aren’t other amazing products that can work well for these purchasers and their unique situations.
Our team of agents is in constant communication with many different local lenders in the area to ensure we are always on the bleeding edge of the best loan programs and options to fit our diverse client base. Over the past month, we have seen more and more buyers considering adjustable-rate mortgages, for example, which provides a lot more flexibility for purchasers to get a more reasonable monthly mortgage payment (due to the rising fixed interest rates), and they also provide the opportunity to refinance in the future if needed.
Today’s local real estate market is a market for the most qualified type of buyer – buyers who do not have significant cash savings are experiencing a lot of difficulty in competitive offer situations (about 50% of all Dane County transactions under contract). Luckily, the many different lenders all have different products that appeal to different purchase needs, varying from first-time homebuyer specials to physician loans, to new construction cross-collateralization, and so many more. We’d love to connect you to our favorite local lenders to see what type of financing options are best suited for you.
