Financing in Clarks Summit>Question Details

Jayne Vaughan, Real Estate Pro in Clarks Summit, PA

As one agent to another, what are you doing to encourage your buyers to take advantage of these extremely low interest rates?

Asked by Jayne Vaughan, Clarks Summit, PA Mon Aug 23, 2010

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6
I think even with the great rates people are unable to buy right now due to their credit scores. It is easy to get behind and it knocks down your numbers. I find my people are applying and just can't get approved. Others are just afraid to make a move until the economy is better.
0 votes Thank Flag Link Tue Aug 24, 2010
I agree with Ian 100% (I did not read all of the responses so I may agree with everyone : )

Consumers, myself included, no matter how smart we are, we need to be shown in dollars and cents, exactly why it is such a great time to buy with the interest rates being historically low.
0 votes Thank Flag Link Mon Aug 23, 2010
I show them the value. For instance, right now we are seeing essentially a 4.25% interest rate on a 30 yr fixed. On a 200k note that means a PI payment of $983/mo and interest paid over 30yrs of 154,197k. At 6%, that same note would be $1200/mo and you would pay 231,676k in interest over the life of the loan. So, would you like to save $217/mo and over 77,000k in interest? What you could you do with all that extra money? Waiting to buy could cost you a fortune, couldn't it? Hope that helps.
0 votes Thank Flag Link Mon Aug 23, 2010
Hi Jayne

That is the single positive push we are left with in our market. The rates are fantastic and, as indicated in an answer already given, showing a buyer what a jump by 1 point will do to their payment, it certainly helps. The problem is job security.. you can have rates at 3% but without job security, it doesn't matter.

Chris O'Boyle
0 votes Thank Flag Link Mon Aug 23, 2010
Jayne,

Buyers in every market are the same. They want the best deal. By showing them how a 1% increase in mortgage rates would affect their monthly payment, they can see what a deal they would be making by purchasing a home now, rather than waiting. Also, you can inform them that rates of 1% higher were not that long ago. Another item of importance is the change coming with FHA loans. If they do not have an FHA case number by October, they will be paying up to nearly 1% more on their MIP which will affect their monthly payment.

Brenda Feria
Real Living Eudailey Real Estate
0 votes Thank Flag Link Mon Aug 23, 2010
Hi Jayne, last week I shared the amazing lock in by one buyer I'm working with in hopes that it will spur others to take action. There is quite a bit of inertia now - hopefully, the extraordinary rates will motivate those that are in the position to buy (with jobs, good credit....) to do so.
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Mon Aug 23, 2010
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