01/23/2024
Debunking the myths!! - brokered by Selling Utah Real Estate
1. Waiting to save a down payment is always the best move!
- NOT ALWAYS! In fact, much of the time this can be detrimental. When prices are going up, the amount you need for your down payment is also going up. Itās better to take advantage of todays price with a smaller down payment, then it is to have to take a higher price with a higher down payment. If you want to put 20% down on a $400k home today, but you donāt have the funds to do so, waiting to save the 20% and taking the same home for $450k after prices increase is a wash or loss, and a lot of extra work! You just missed out on $50k in appreciation too!
2. My full down payment has to happen right at closing!
- NOT NECESSARILY!! Thereās this thing called a loan re-cast thatās pretty cool but no one seems to know about it! If youāre waiting to buy when your inheritance comes in or your business sells, you could be missing out on potential savings by not taking advantage of prices before they go up. Put what you have down now, lock in the lower price on your home, and then re-cast your loan when your money comes through later! Loan terms stay exactly the same, but your payment is lowered, because you can apply that extra money one time after your loan closes in addition to your original down payment. Pretty cool!
3. Waiting for rates to come down is definitely always best!
- WRONG AGAIN! None of us have a crystal ball, we dont know when and by how much rates will come down. With the fed predicting that theyāll lower rates thereās a chance we will see better rates by end of year. The thing people sometimes fail to realize is that you can change your rate down the road! But you canāt change your purchase price down the road! Buy now when prices have come down due to high rates, and then refinance for a better rate when they come down! Obviously, find a comfortable budget for your monthly payment just in case, but even in the event that rates keep going up, youāll be glad you bought when you did and got in at the lower rate!
Call or text me if you have any questions! I love helping people find creative solutions to getting into a home at the right time for them! 801.388.0742