Thank you Record high mortgage rates have made Buying a new home unaffordable for many People even as the FED begins to slow Down these interest rate hikes mortgages Costs remain more than twice as high as They were 18 months ago and as of June 15th the average cost of a 30-year fixed Rate mortgage is 6.8 Percent the average refinancing rate on A 30-year mortgage is 7.2 percent but Now a new real estate trend is helping Potential homeowners lock in lower rates With a mortgage transfer let's bring in Daryl Fairweather she is the chief Economist for Redfin real estate Brokerage Daryl thanks so much for Joining us so what are mortgage Transfers and who exactly is eligible For one because on the on the face of it It sounds like it could potentially help A lot of people But some mobile mortgages are most Common for VA mortgages there's some Fine print in those mortgages typically That allows the mortgage folder to Transfer the mortgage to a buyer now It's going to be at whatever value the Mortgage is so if the home is worth a Lot more than the mortgage then you Can't put the entire amount on one of Those transfers but it can be a way to Keep a lower interest rate and to get a Higher price from a buyer so Daryl this
Is so interesting Um tell us obviously as a person who's Selling their home this seems to be if You can transfer your mortgage at a much Lower rate something that you could use Potentially to even increase your asking Price tell us how it's all playing out Well yes if you have one of these Mortgages it can be something valuable To people making offers for the right Kinds of buyers and especially if you Haven't in demand type of home that a Lot of people want you can use that to Your advantage to get a higher price It's more common in places with a lot of Veterans who have these VA loans like in Virginia Beach or in San Antonio and you Don't need to be a veteran to assume one Of these mortgages it's more on their Side that they can transfer it it means That they can't get another VA loan While this transfer is in effect but for Some people it can be a way to get that Lower mortgage rate you know Daryl this Is such a high interest story I think For so many people I was just talking to A co-worker the other day who was Lamenting the cost of real estate here In the tri-state area and can't get in To buy a home right now so they have to Continue renting but I'm wondering what Some other ways might be for potential Home buyers and home buyers out there Who are looking to bring down their
Mortgage rates because as they've been Looking at the trends they're just not Very hopeful right now now Yes there are many different ways to get That mortgage rate lower you can go with A 15-year mortgage instead of a 30-year Mortgage you can buy points towards a Mortgage which means putting more money They give you more money to the lenders You get a lower rate you can put down a Larger down payments the overall size of Your loan is smaller and that monthly Mortgage payment is smaller we're Actually seeing the record share of People paying cash so if you're paying Cash you can avoid the mortgage problem Altogether uh Daryl one of the things That you suggested was an adjustable Rate mortgage like a 15-year arm given The trends in real estate right now Would you recommend to people to get an Interest rate that is fixed at this Percentage rate for a set period of time And then is adjusted but it all it also Has a potential uh that if interest Rates continue to go up that they're Going to end up paying more what what is The best recommendation given the data That you see Using an adjustable rate mortgage is a Good way to basically get a lower Mortgage payment now and then you're Going to refinance later on then it Doesn't really matter if you have an
Adjustable rate mortgage you can just Start a new mortgage with a refinance so If you think mortgage rates are going to Go down in the future that's my personal Belief then it can be a good option Because you get the advantage of buying Now before prices go up in the future And then you can still refinance it is a Little bit risky because there's always A possibility that mortgage rates go up Instead of down no one knows for sure What's going to happen in five seven Years when these adjustable rate Mortgages start to float with whatever Interest rates are so you just have to Be prepared for that risk I have a plan You know if you don't want to keep your Mortgage maybe plan on selling or making Those higher payments all right Daryl Fair weather Daryl thanks so much
