Derek Altoonian

I know I don’t post a lot…. But felt I needed to throw this out there.

Rates being high is the best thing to happen to buyers in the past 3 years….WHY????


Right now you can negotiate closing costs, home prices, NOT pay OVER asking price and not have to pay differences from appraisal to the higher sales price. Most homes are appraising for substantially more than what they are going under contract for.



Take a current situation that has roughly a $600k loan:



Bought the home for 10k under asking price, got $20,000 in seller concessions to pay for closing costs and/or help with the monthly payments for the next 2 years. And…..the home appraised for $50,000 more than the sales price. This couple just made $80,000 today. Add an extra $35,000 for appreciation over the next year. They made over $100k in 1 year in addition to there daily income.



The negatives: It is about $1000 more a month in interest than a “normal” rate (not taking into account the reduction on your income taxes). A refi costs roughly $6000. That is a cost of $18,000.



$115,000 - $18,000 = $ 98,000.00 in an increase in wealth. That is HUGE!

This is huge all!!!

It used to be substantially more down for multi unit primary residences for conventional loans!!! It is now only 5% down! You can get a 2 to 4 unit property now for 5%!!