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It is Money Monday y’all as the mortgage rates hit 8% home affordability, it’s becoming incredibly difficult for some people. Our money expert tonight, Jini Thornton is here to give us some tip on how to buy a house even when the interest rates are high.
GUMEC
00:00:34 Speaker 2
Home buying assistance programs may help people buy their dream home. How do home buying assistance programs work and where can we get information about them? Well, they can be offered at several different levels, federal, state, but in particular, typically at the local or county level. And they work in different ways. Sometimes they’ll help you.
JINI THORNTON
With down payment assistance, closing costs. Some even offer favorable interest rates or even tax credits. So if it would me, I would check out a couple of different place. Number one, I would go to Hud’s website. That’s the US Department of Housing and Urban Development. So that’s hud.gov but I would also do a Google search for my local county.
Because again, the majority of programs are going to be offered at the local level, but last thing most of us think first time home buyer programs or home buying assistance programs are only for first time.
And buyers a lot of times they are for people who have already purchased the home. So don’t count yourself out. Do your research.
GUMEC
OK, I love that. I love that. OK, so I’ve been hearing mortgage rate buy downs can be a good strategy to help people buy houses when interest rates are high. OK. So tell us first what are buy downs and how do they work?
JINI THORNTON
They’re coming back, Erica. Because interest Rates are back High again and it’s been some time. So this could happen a couple of different ways. Number one, this you could do it actually through your mortgage company or you can give them some money up front. So you can literally buy your rate down. But guess what you can also do this with your seller. In certain circumstances, the seller will give you money and actually help you buy your weight down. So again, this is just another strategy or tool that folks can use. Since interest rates are approaching that 8% net.
GUMEC
And would you suggest that people buy houses now or wait until mortgage rates drop?
JINI THORNTON
Well, you know, What I think it depends upon our individual situation, but if you have steady income, if you have Good credit, if you Have been saving for that down payment. We have to live somewhere, and I think a lot of us are taking our cues for the news. You know, we’re hearing about the economy and interest rates, do the math.
Check out one of those mortgage calculators, please don’t count yourself out. I need you to do the research on your math. You got to pay to live somewhere anyway. Now might be the perfect time.
GUMEC
Yeah. And sometimes people are paying so much in rent, you might as well be. Buying you might as well.
