In today’s real estate landscape, homebuyers face unique challenges and opportunities. With high interest rates prevailing in the market, finding affordable financing solutions has become more crucial than ever.
Fortunately, 1st Priority Mortgage offers three sought-after products that are excellent products for homebuyers: Cash Advantage, Rate Reducer and Buy Before You Sell. Let’s explore these options and why they make sense in today’s housing market.
Understanding Rate Reducer
Rate Reducer is a mortgage financing strategy that allows homebuyers to secure a temporary lower interest rate on their home loan. Known as a 2-1 buydown agreement, Rate Reducer provides the buyer a low interest rate for the first year of the loan, a somewhat higher rate for the second year, and the full rate for the third year and beyond.
Advantages of Buydowns
- Affordability: With high interest rates in today’s market, buydowns offer immediate relief by reducing the cost of borrowing. This can make homeownership more accessible for those concerned about affordability.
- Budget Predictability: Buydowns provide a predictable payment schedule, which can help homeowners budget effectively. This stability is especially valuable in a volatile interest rate environment.
- Investment Leverage: Lower monthly payments in the early years can free up cash for other investments or home improvements, allowing homeowners to enhance their property’s value.
Buy Before You Sell
Understanding Buy Before You Sell
Buy Before You Sell is a short-term financing option to help homeowners transition smoothly between two properties. It is an excellent solution for those who need to buy a new home while their current one is still on the market.
Advantages of Buy Before You Sell
- Facilitates Quick Purchases: In a competitive housing market, where properties sell rapidly, bridge loans provide the necessary funds to buy a new home before selling the existing one.
- No Rush to Sell: Homeowners can take their time to secure a favorable sale price for their current property rather than settling for a lower offer due to time constraints.
- Increased Negotiation Power: Having the flexibility to wait for the right offer on your old home can lead to better financial outcomes.
1st Priority Cash Advantage
Understanding 1st Priority Cash Advantage
Cash Advantage is an exclusive, one-of-a-kind program that allows homebuyers to provide an as-good-as-cash or better offer to help them secure their dream homes in a highly competitive market. With Cash Advantage, clients receive a fully underwritten mortgage commitment and an acceptance letter from 1st Priority Mortgage– which delivers a strong, competitive offer for buyers and peace of mind that sellers are accepting a cash offer guaranteed by a credible lending source.
Advantages of 1st Priority Cash Advantage
- Competitive Edge: Make your offer with full credit approval, allowing for the removal of any financing contingency. This competitive edge can be especially valuable when multiple buyers are interested in the same property.
- No Additional Costs: The Cash Advantage is provided at no additional cost to qualified buyers. 1st Priority Mortgage does not charge any participation or program fees to apply for the program.
Why These Mortgage Options Shine Today
Homebuyers must explore creative financing solutions in today’s housing market, marked by high interest rates and competitive conditions. Rate Reducer, Buy Before You Sell and 1st Priority Cash Advantage offer strategies to mitigate the impact. In a competitive housing market with limited inventory, having access to these financing options can give buyers an edge.
1st Priority Mortgage offers financial relief, flexibility, and competitive advantages that can make homeownership a reality even in challenging circumstances. We can help you find the right mortgage product to confidently navigate today’s housing market.
Howard Hanna Real Estate is not a mortgage lender. Contact 1st Priority Mortgage, Inc. for mortgage products and eligibility. 1st Priority Mortgage, Inc. is a Licensed Mortgage Banker, New York State Department of Financial Services, NMLS #29600. All lending products are subject to credit and property approval. Terms, conditions, and certain restrictions may apply on all programs. Interest rate and program terms are subject to change without notice. This is not a commitment to lend. Contact a 1st Priority Mortgage Consultant for full details. (888) 500-9733. EQUAL HOUSING LENDER.