How can I beat the high interest rates when buying?

I keep having the same conversation with Buyers right now who say you know what, the interest rates are too high we're not going to purchase a property. But yet here at the end of 2022 as interest rates continue to rise we're still working with Buyers who are moving forward and purchasing homes. Now why are they doing this? Are they just paying these high interest rates because they have to? No, we've actually implemented some strategies for our clients to actually beat the current interest rates.

The first thing that we're leveraging and doing for our buyers is we're introducing them to local banks and lenders. Lenders that lend their own money and don't simply borrow it from somewhere else package alone and then sell it off to Fannie or Freddie. Some of these local banks, because they're lending their own money, are perfectly fine and have interest rates that are one to two percent lower than some of the big banks. And they're perfectly fine generating these loans, making a good return of five percent or so. We introduce them to these local banks and lenders. And if you want to know more let us know.

Second thing that we're doing is we're staying in tune with all of the big banks and all of the other lending channels out there to understand the new products that are coming out to the market. The one thing you need to understand is even when the market slows down banks
need to generate loans in order to run a business. And they understand that these interest rates are kind of high and so they're coming up with a lot of creative ways to get people off the fence and into the buying Market. One example would be some of the banks have a program
where the first year of your home ownership your interest rate is two points below what the current market rate is. Then the second year, it's one percent below and then the third year it
adjusts to what the market rate is today. And the hopes are, maybe in two to three years that rates will come back down and you can refinance. If not, you're just back to the interest rates of what they're at today but you had some breathing room. So lenders are coming up with new programs literally every day and we're staying on top of them and educating our buyers about that.
The third way that we're doing this is we're actually educating our buyers on the
benefits of correctly utilizing an armed loan or an interest-only loan. These are loans that some of the most sophisticated wealthy people have used in any market and use all the time to
help leverage their money. And there's absolutely a correct way to use these programs in order to keep your costs lower. Another strategy we're utilizing is we're going out there and we're
finding properties where the sellers are willing to buy down our buyers interest rate. Sometimes as much as one to two percent. What that means is our buyers are getting a loan but their interest rates are one to two percent below everyone else's because the seller is paying up front for those rates to come down. And that's great for our buyers and they don't even have to pay for the cost of that.

With that being said if you have any questions about some other strategies or hear more about these ones in regards to beating the current interest rates give us a call and we'd be happy to go through it with you.