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Contact: Mike Swaleh, Area Manager
Fairway Independent Mortgage Corporation
Phone: 314-478-3699
Email:
mi*********@fa*******.com
Website: https://www.fairwayswaleh.com/
REAL ESTATE MORTGAGE LOAN TREND HELPS TO EASE THE PAIN OF RISING INTEREST RATES
Fairway Independent Mortgage offers mortgage program that benefits both buyer and seller
As most are aware, the Federal Reserve acting on behalf of the US government have taken drastic measures to abate inflation, and one of the side effects has been drastic movements in the interest rates environment. The rapid increase in fixed mortgage rates this year has pushed many buyers to the sidelines with affordability concerns. The potential for rates to retrace and give back some of their rise has caused these buyers to take a wait and see approach. For those that may need to buy a home now and have strong reasons not to wait, an opportunity to purchase a home with less competition has opened, but at the same time, they have the same concerns.
Fairway Independent Mortgage wants home buyers to know that there is an alternative solution, and this is where a temporary “buy down” comes into play. A “buy down” is an agreement between the buyer and the seller where the seller offers a credit that will be used by the lender to reduce the interest rate for a certain period of time. One specific example is called a “2/1 buy down”.
For example, let’s say potential homeowners are considering buying a $300,000 home that has been on the market for two weeks—it would have been almost unheard of 90 days ago, but is a growing reality now. The seller of this home may be considering a 5% price reduction, thereby netting only $285,000 if it sells. With a full price offer, rather than reducing the price of the house which may only save the buyer a minimum amount on their monthly payment (say, $75 for example), the special program offered at Fairway applies a 2.3% credit directly to subsidize the interest rate and monthly payment in a much more impactful way, saving the seller (netting 2.7% more) and buyer (more like a $300/month lower payment) a substantial amount of money.
Typically, the seller contributes funds to an escrow account that subsidizes the loan during the first years, resulting in a lower monthly payment on the mortgage. This lower payment allows the homebuyer to afford the mortgage more easily in the first 2 years—the time in which they’ve already paid for their down payment, moving expenses and furniture! A lower interest rate can not only save the buyer money on their monthly mortgage payment, but it will reduce the amount of interest they will pay on their loan over time.
Only a seller or a builder may pay for the buydown. A seller can offer this option as a concession for the sale of their property, thus giving more buyers an incentive to purchase their property – without lowering their list price. This can get buyers off the fence who wouldn’t have previously considered buying now.
According to Mike Swaleh, Area Manager, Fairway Independent Mortgage Corporation, “This program buys a lot of time for a favorable refinancing rate to come through. This is not just a hyper short-term solution, but really more of a moderate-term solution which allows plenty of time for income to increase, a refinance to occur and for other life changes that may happen.
Our customers should consider whether it makes sense for their unique situation. We are always happy to review all sides of the equation for them and compare different loan programs to help find the best one.”
The Interest Rate Buydown Program at Fairway Independent Mortgage can be a beneficial tool for various parties in multiple different situations:
· Builders, sellers, or anyone who is looking to lock in a buyer: Can cover the cost of the prepaid interest, which increases the buyer’s savings.
· Renters transitioning to buy: Whether they are ready to buy but not ready for a higher interest rate. As interest rates continue to rise, this program becomes especially important for buyers who are looking to lock in their loan at a lower rate now.
· Buyers expecting a raise: This program could be especially beneficial for recent medical school or other post-graduate program graduates or anyone who expects to see an income increase almost immediately.
· Buyers with temporary income decrease: If the buyer or their partner / significant other is out of the workforce for a period of time, this program can provide the necessary financial aid until they are able to earn an income again.
About The Swaleh Team and Fairway Independent Mortgage Corporation:
Fairway Independent Mortgage Corporation is one of the largest and highest rated mortgagees in the United States. Mike has branches in Kirkwood, Eureka, Destin FL, and is soon opening one in Northern California. Collectively, his branches do over $100 million in loan volume per year. The Kirkwood, MO branch also focuses heavily on supporting the military. They wave their entire lender fee for all veterans who purchase a loan through their branch. They also donate a portion of their profits every month to the American Warrior Initiative. They held a large fundraiser and sponsored a service dog for a veteran in need in 2018 and will be repeating the fund raiser in May of 2023.
In addition to leading the network of branches, Mike Swaleh, Area Manager, is also a coach and class teacher for the company’s coaching company, Fairway Ignite. Swaleh is also a real estate investor in the Saint Louis market, part owner of an Insurance Agency, Real Estate Developer and Commercial Lending Broker and licensed to do mortgages in 29 states.
For further information on Fairway Independent Mortgage Corporation, please visit the company’s website at http://www.fairwayswaleh.com, or email
ms*****@fa*******.com
.
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Diane Carson has been in the Marketing and PR field for over 30 years. She has helped clients from small businesses, manufacturers, industrial and technical companies to keep their name in front of their customers on a consistent basis.
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