Many people fall out of the home buying market when interest rates start to go up. This is often a mistake. Many of the best mortgages deals become available when lenders are competing for new business and sellers are competing within a smaller buyer pool. You just have to know how to keep the costs down in order to counter the higher interest rates.

One of the best tricks is the buy-down. In a buy-down, a fee is paid at the closing to get a lower interest rate. In a soft market, an anxious seller may be lured into to paying all or part of the buy-down. Another approach is to get the seller to pay some of closing costs, thus lowering the amount of cash a buyer needs to close. Frequently the seller's costs can be used as a write-off by the buyer. Always consult with your tax advisor if you are considering such an arrangement.

If the market is softening due to rising or higher rates, the price itself becomes an area where a buyer may be able to save a lot of money on a house through skillful negotiating. Lower prices mean lower loan amounts, so don't be discouraged by higher rates--use them to your advantage.

	See All Tips In The "Financing Your Home" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

Wendy Louie
Prudential California Realty
906 Eucid Ave
Berkeley, CA 94708
510-851-9888
Fax: 510-528-6916
WendyLouie@NUMBER1EXPERT.com

www.WendyTLouie.com is brought to you by Wendy Louie
NUMBER1EXPERT™ in real estate for Oakland, Berkeley, Albany, El Cerrito and San Francisco, California

Read Wendy Louie's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge