The rise in interest rates has been a challenge for many buyers during their home search. There are a few solutions that buyers can utilize to keep their payments affordable.

First, consider using a local bank. Local banks often have more competitive rates because they do not always sell your loan after closing.

Another potential solution is negotiating that the seller pays your loan points. Loan points are a way of buying down the interest rate, which in turn, lowers your monthly payment. Rather than negotiate a reduction in sales price, which when spread over a 30-year mortgage has little impact on the payment itself, negotiate seller-paid loan points instead.

Last, consider an adjustable-rate mortgage. City buyers especially tend to sell within 3-5 years of purchase. Ask yourself how long you will actually own the property. If it is less than 10 years, explore adjustable rate mortgage options that provide a 5-year, 7-year, or 10-year fixed rate at a lower price than a 30-year fixed mortgage. 

Boston is a global city and attracts people worldwide for its opportunities in education, healthcare, pharmaceuticals, technology, and finance.  This diverse economy keeps the demand for housing high. Watch “Boston by the Numbers” to learn about Boston’s past performance during times of turmoil.  Buyers should be taking advantage of their [...]

1. Lending Has Been Strict Since 2008

Talk to anyone who has purchased a home since 2008, they will share with you how difficult it is to be approved for a loan. The lending process is stringent, and the majority of buyers who have purchased since the housing crisis were extremely well qualified. These stricter lending requirements have [...]