If you’ve been on the fence about buying a home because of rising interest rates, the Rate Rebound Program could be just the solution you’ve been waiting for. This unique program provides buyers with the peace of mind that, if interest rates drop in the future, they can refinance and get the lower rate—without paying a bundle in lender fees. But the key point here is that waiting for rates to drop before buying could actually cost you more in the long run. Here’s why:
The Impact of Falling Interest Rates
When interest rates fall, it often leads to an increase in buyer demand. More people want to take advantage of the lower rates, meaning more competition for available homes. This surge in demand can drive up home prices. So, while you might be hoping to save on a lower rate by waiting, you could end up paying a higher price for the same home.
Lock in Today’s Prices with Future Rate Protection
With the Rate Rebound Program, you can purchase a home now and lock in today’s prices while knowing you have the opportunity to refinance at a lower rate later. Here’s how it works:
- Rate Rebound allows you to refinance your loan if rates drop after your purchase, without the burden of typical lender fees like processing fees, administrative fees, appraisal fees, or credit report fees.
- You can refinance any time from six months to five years after closing, as long as the new rate provides a tangible benefit, such as a 0.5% rate reduction.
- Plus, CMG Home Loans will cover up to $1,000 of third-party fees, making the refinance process even more affordable.
Why It’s Smart to Act Now
By buying now, you’re securing your home at today’s price. If interest rates decrease, you’ll have the flexibility to refinance without all the extra fees, putting you in a great financial position. And if rates don’t drop, you’ll still have the security of knowing you bought a home at a lower price before increased buyer demand pushes prices higher.
In summary, waiting for lower interest rates could mean paying more for your dream home. The Rate Rebound Program gives you the best of both worlds: locking in a home at today's prices with the chance to refinance and save later if rates fall.
If you’d like more information or are ready to explore your options, reach out to us at North Conway Realty or Kaylie at CMG Mortgage (603-323-0992) or kdean@cmgfi.com