We are in peak election season, and it's common for potential home buyers to feel uncertain about the current real estate market and beyond. Concerns about fluctuating prices and interest rates may lead some to hesitate. In fact, we recently published a blog breaking down the question, do elections actually impact home prices? You can check it out here.
While historical data and numbers suggest that elections (spoiler alert coming up) do not affect home prices, we understand the concerns about making such an important purchase with so many perceived unknowns. However, if you’re thinking about making a move, now might be the perfect time to consider purchasing a home due to interest rates being relatively reasonable and a variety of buyer programs available. Last October, interest rates were just above 7%, and today, the average is around 6.5%.
For example, if you were looking at a $2,000/month mortgage payment at a 7% interest rate, you are looking at a loan amount of roughly $300,000. With a drop to 6.5%, your payment would decrease to about $1,896, saving you approximately $104 per month. Over a year, that’s an extra $1,248 you could use for other expenses or savings! Add that to Empire Homes' 3% homebuyer credit, and there is another $9,000 (on a $300,000 loan) that can be used to help cover things like closing costs or put back into your bank account to cover almost the first 5 months of your mortgage! 🤯
Refinancing
Additionally, if you buy now and rates drop later, you can take advantage of refinancing down the road. Refinancing your mortgage involves replacing your existing loan with a new one, typically to secure a lower interest rate or to change the loan term. This can be especially beneficial if you purchase a home at a time when rates are reasonable but later see interest rates decline. Benefits of refinancing include:
Lower Monthly Payments: One of the primary reasons homeowners choose to refinance is to secure a lower interest rate, which can significantly reduce monthly mortgage payments.
Shortening the Loan Term: Refinancing can also allow you to shorten your loan term. If you’re in a position to pay a bit more each month, switching from a 30-year mortgage to a 15-year mortgage can save you thousands in interest over the life of the loan, helping you pay off your home faster.
Access to Cash: If your home has appreciated in value, refinancing can provide an opportunity to access the equity you’ve built up. This cash can be used for home improvements, paying off high-interest debt, or even funding significant life events.
The beauty of refinancing is that it allows you to stay adaptable to market changes. Once you own your home, you’re not locked into your original mortgage rate. You can monitor the market and consult with your lender about your options when rates drop. If it makes sense financially, you can initiate the refinancing process to secure better terms.
Seizing The Opportunity
Questions around the timing of buying a new home, interest rates, and the impact of election season are all natural. With so many factors to consider, we understand that buying a home is a major decision, but rest assured, our team is here to support you every step of the way. Recently, we had a Google review that meant so much to us that we just had to share it with you.
“Our experience with Empire Homes well exceeded our expectations. The team of Morgan, Aaron, Jorden, and Tyler worked together seamlessly and delivered what was promised and when it was promised. We love our new forever home, and we have this team to thank!
Morgan was our main point of contact, and she is nothing short of spectacular. She helped us with our design choices, coordinated efforts to address our special requests, and always responded immediately. She is also a very kind and patient person.
A special thanks to Aaron for implementing a last-minute landscaping change. This required him to work late and coordinate changes by early next morning with the larger team. We know he is responsible for so much and we appreciate him taking time to deliver on this special request.
Jorden did a tremendous job managing tasks, timelines, and of course everything in between. Specifically, we would like to thank him for his efforts coordinating the installation of our numerous custom cabinets and epoxy garage flooring from Save Our Space. We know Jorden had a lot on his plate to deliver by closing yet he always took time to talk with us and answer our questions.
Finally, special thanks to Tyler. A few days after we closed, we identified a leak from the sprinkler line. Of course, it was Friday afternoon. In a slight panic, we texted Morgan who called Tyler who knocked on our door within 5 minutes. He called the plumber who showed up after 5 pm. Issue resolved by 6 pm!
We would highly recommend Empire Homes to anyone without reservation.”
Excuse us while we go grab a tissue to wipe our tears of joy. In the meantime, If you’re ready to take the next step or still have questions, our team is here to guide you through the process of purchasing a new construction home. Reach out to us today to discuss how you can make the most of this unique opportunity in the real estate market.