Comment on How savvy homebuyers use mortgage strategies to cut their interest rates

How savvy homebuyers use mortgage strategies to cut their interest rates

After years of record-low mortgage rates, many homebuyers are frustrated by paying more than 8 percent interest to buy a new home. “Nobody loves rates in the high 7s or 8s,  but they’re not sticker shocked like they were in the beginning,” said Nicole Rueth, senior vice president of The Rueth Team powered by Movement Mortgage. However, using mortgage strategies can reduce monthly payments and save thousands over the loan’s lifetime. Rate buydowns These strategies include 3-2-1 or 2-1 rate temporary buydowns on fixed-rate mortgages, permanent rate buydowns, adjustable-rate mortgages, cash purchases, and utilizing down payment assistance programs. A 3-2-1 mortgage buydown reduces the interest rate by 3% in the first year, 2% in the second year, and 1% in the third year.

 

Comment On This Story

Welcome to Wopular!

Welcome to Wopular

Wopular is an online newspaper rack, giving you a summary view of the top headlines from the top news sites.

Senh Duong (Founder)
Wopular, MWB, RottenTomatoes

Subscribe to Wopular's RSS Fan Wopular on Facebook Follow Wopular on Twitter Follow Wopular on Google Plus

MoviesWithButter : Our Sister Site

More Business News