Get the Lowest Mortgage Payment - Lender Explains

TL;DR

Discover unique strategies to save hundreds or even thousands of dollars on mortgage payments when buying a home in the current expensive market.

Transcript

so buying a home right now is expensive in fact buying a home right now is only cheaper than renting in four cities in the entire United States so if that's the case why are so many people still buying homes right now I mean not every single one of these people can be a cash buyer right so they have to be able to afford a mortgage somehow over the ... Read More

Key Insights

• 💰 Buying a home is expensive and is only cheaper than renting in four cities in the entire US, but there are strategies that can help save money on mortgage payments.
• 💵 Instead of lowballing the price of a home, ask for a seller credit at closing to cover some of the closing costs. This money can be used to buy down the interest rate, resulting in significant savings on monthly payments.
• 🏠 Consider using a temporary buy down strategy, such as a 2-1 buy down, which offers a lower interest rate for the first two years of homeownership. This can result in savings of over $11,000 in the first two years.
• 💸 Paying mortgage insurance can be costly, but it can be paid in full upfront using seller credits. This can save over $200 a month compared to paying it monthly.
• 🌟 These strategies can be stacked together, depending on the amount of seller credits available. For example, using seller credits for a buy down and to buy out mortgage insurance can save over $800 a month.
• 📈 Despite the high cost of buying homes and high interest rates, using these strategies makes it possible and probable to afford buying a home in this market.
• 🏡 It's important to understand how much you can afford before starting the home buying process. There are resources available to help determine affordability before getting pre-approved.
• 👍 If you learned something new, consider liking the video and subscribing for more content on saving money during the home buying process.

Questions & Answers

Q: How can asking for a seller credit instead of a price reduction lead to more significant savings?

By using a seller credit to buy down the interest rate, monthly mortgage payments can be reduced significantly compared to just reducing the price of the home.

Q: What is a temporary buy down, and how does it help with saving money?

A temporary buy down offers lower interest rates in the initial years of homeownership, resulting in significant savings on mortgage payments during those years.

Q: How can paying upfront mortgage insurance instead of monthly payments save money?

By using a seller credit to pay off mortgage insurance in full, homeowners can avoid monthly insurance payments and save a substantial amount each month.

Q: Can these money-saving strategies be combined for even more significant savings?

Yes, these strategies can be stacked on top of each other, allowing homebuyers to maximize their savings by using seller credits for multiple purposes like buying down interest rates and paying off mortgage insurance.

Summary & Key Takeaways

• Instead of lowballing the price, ask for a seller credit to cover closing costs and use it to buy down the interest rate, resulting in significant monthly savings.

• Temporary buy downs offer lower interest rates for the first few years of owning a home, leading to substantial savings in the early stages.

• Paying upfront mortgage insurance instead of monthly payments can save a significant amount each month, and these savings can be combined with other strategies for maximum benefit.