Even With Rising Interest Rates, Potential Homeowners Have Options
ATLANTA , Oct. 20, 2022 /PRNewswire-PRWeb/ -- Homeownership is still the American Dream, and Silverton Mortgage, a leading direct residential mortgage lender, is counseling customers on options for making their own dreams come true even as interest rates have risen in 2022.
"It's important to note that rates are still historically low and that they are still less than they were from the 1970s all the way through until the Great Recession of 2008," said Dan Dadoun, president of Silverton. "And while there's no doubt this market is tough, we've seen it worse. People who purchased a house in the early 80s had to cope with rates soaring up to 18 percent. These latest hikes are really just a correction after the pandemic, which was a completely abnormal situation for the housing market."
A recent BankRate® survey reveals that nearly three-quarters of Americans place owning a home above career, family, and college as a sign of prosperity. Even with rate hikes, Silverton has options that allow customers to "marry the house, and date the rate."
"Finding the perfect home can be hard to come by, but if you find 'the one,' think of a less desirable interest rate as a short-term problem," Dadoun said. "You can try to wait out the market and refinance if rates drop again, or you can take advantage of other innovative loan programs to buy today."
Some of the loan program options that potential purchasers can take advantage of include:
-- Adjustable-Rate Mortgages (ARM), which keep mortgage payments as low as possible during the early years of the loan.
-- Silverton's 2/1 Buydown Program, which offers the sellers the option to buy down the buyer's interest rate by 2 percentage points for the first year of the loan, and then 1 percentage point for the second year. *
-- Down Payment Assistance (DPA) programs can be a big help. DPAs typically provide assistance in the form of a grant or forgivable loan that can generally be put toward the down payment or closing costs. DPA programs vary by state and locality. Requirements and conditions may differ depending on loan and state.
Finally, potential buyers could consider buying a fixer-upper. Coupled with a renovation loan like Silverton's Construction to Permanent Renovation Loan, which allows the renovation portion to roll over into a traditional mortgage for one set of closing costs, fixer-uppers can become the perfect property.
A few other reminders for potential homebuyers:
-- A huge down payment is NOT a requirement; there are loan options that require low, or even zero, money down.
-- Being at the same job for two years isn't necessary either, which is especially helpful to those who were laid off during the pandemic or others who have sought new opportunities during the Great Resignation.
-- Finding the perfect home isn't the first step to becoming a homeowner, getting pre-approved is.
About Silverton Mortgage
Founded in 1998, Silverton Mortgage has grown from a one-man operation to an acknowledged leader within the mortgage industry. In both 2020 & 2021, more than 9 out of 10 borrowers said they would recommend Silverton to their friends and family**. In addition, Silverton has repeatedly been recognized by the Atlanta Journal-Constitution® as one of the top places to work.
Silverton Mortgage also supports many community organizations with team time and resources including The Silverton Foundation, which provides mortgage and rental assistance to help reduce financial and emotional burdens for families with children who have been hospitalized or receive ongoing chronic or critical care treatments.
All loans are subject to credit approval.
*Example of 95% LTV (5% Down Payment) 2-1 Buydown Loan Program with $400,000 sales price. $380,000 loan amount, $20,000 cash down payment 30-year fixed interest rate loan with 3.375 points. $2,157.60 monthly payments for years 3-30. First-year monthly payment $1,706.37 as if interest rate was 3.5%, & APR 6.027%. Second-year monthly payment is $1925.40 as if interest rate was 4.5% and 6.027% APR. Monthly payments do not include required mortgage insurance, taxes, insurance premiums or other applicable escrows. Actual payment amount will be higher. Example includes $1,295 origination fee, 6.027% APR and 5.5% interest rate for years 3-30 of the loan as of 9/13/2022 and a credit score of 720. Note interest rate will reflect 5.5% interest rate on all years. Rates, fees, other charges and terms are subject to change. Available loan programs and terms will vary by state. Product requires a seller contribution of $8,201.16 to pay for the cost of the 2/1 buydown.
Vanderbilt Mortgage and Finance, Inc., dba Silverton Mortgage, 1201 Peachtree St NE, Ste 2050, Atlanta, GA 30361, 404-815-0291, NMLS #1561, (http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act license, Licensed by the N.J. Department of Banking and Insurance, Licensed by PA Dept. of Banking, Rhode Island Licensed Lender. Licensing information: https://silvertonmortgage.com/licensing/. All information is believed accurate and is subject to change without notice. Equal Housing Opportunity.
**As compiled by Experience.com as of October 1, 2022. Experience.com is a trademark of BuyersRoad, Inc. NPS is a registered trademark of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.
Media Contact
Tiffany Fessler, Silverton Mortgage, 7706053187, [email protected]
SOURCE Silverton Mortgage
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