Home builders are offering 4.99% interest rates on new homes!

If I told you that you could get a five-and-a-half percent interest rate on your mortgage, would you be interested?

Well, guess what? You can, and you should! In this article, we will discuss how new construction homes can help you secure a better interest rate and increase your buying power. My name is Mischa, and I help people from all over the world make the move to Warner Robins and Robins Air Force Base. If that's something you're interested in, keep following me. And if you're looking to move to Warner Robins and purchase a home in the next three days or three months, reach out to me. Now, let's dive into the topic of interest rates. VIDEO HERE

The Current Interest Rate Situation

Interest rates are a hot topic right now and for good reason. As I'm writing this, we are at over seven percent interest rates. The Federal Reserve just met a week ago and voted on raising the interest rates again. This is a far cry from the two-and-a-half to three percent interest rates we had a couple of years ago. It's uncertain where interest rates will go in the future, but for now, they are not favorable for home buyers.

The Advantage of New Construction

So, how can you fight against high-interest rates and secure a better rate? The answer is new construction homes. Builders have a large inventory of homes that they need to sell, so they offer incentives to buyers. These incentives often include lower interest rates if you use the builder's preferred lender.

Builders' incentives are significantly lower than the interest rates you see in the market. I receive emails from builders across Georgia every day, advertising incentives between 5.5 and 5.99 percent if you use their preferred lender. Of course, you still need to qualify for these loans, but if you do, the builders will buy down your rate.

Calculating Your Buying Power

Even if you don't qualify for the 5.5 percent rate, you will likely qualify for a rate below the current average. This lower rate increases your buying power, which is a huge advantage for you as a homebuyer.

Let's compare the monthly payments for pre-owned homes and new construction homes. In the Warner Robins area, the median home price for pre-owned homes is $345,000, with a current average mortgage rate of around 7.1 percent. This translates to a monthly principal and interest payment of about $2,291.

On the other hand, new construction homes in the area have a median price of $361,000. If you take advantage of the 5.5 percent rate offered by builders' preferred lenders, your monthly principal and interest payment would be around $2,050. That's a difference of about $240 in monthly payments.

This difference in monthly payments affects your buying power. Lenders consider your monthly affordability when calculating the maximum sales price you can afford. With a lower interest rate, your buying power increases. Let's take a closer look at the numbers.

If you were to purchase a pre-owned home with a monthly payment of $2,291 at a 7.1 percent interest rate, you could afford a home with a purchase price of $345,000. However, if you were to take advantage of the 5.5 percent rate offered by builders' preferred lenders, your monthly payment of $2,291 would allow you to purchase a new construction home with a price of around $400,000. That's $55,000 more buying power than with the higher interest rate.

Incentives Offered by Builders

Not only do builders offer lower interest rates, but some also provide additional incentives. For example, some builders offer up to $7,500 towards your closing costs. This can be a significant help, as coming up with that amount of money for closing costs can be challenging.

Taking Advantage of New Construction

You might be thinking that new construction is not in your budget or that you don't have the time for it. However, it's essential to consider the overall real estate market in Warner Robins. Currently, there are 187 pre-owned homes on the market with a median price of $345,000. On the other hand, there are 127 new construction homes with a median price of $361,000.

While the median price for pre-owned homes is $16,000 cheaper, the lower interest rate offered by builders can make a significant difference in your monthly payments. With a lower interest rate, you can potentially afford a more expensive new construction home with the same monthly payment as a pre-owned home.

Additionally, many new construction homes in the Warner Robins area are already completed or will be completed within the next few weeks. This means you don't have to wait for months for your home to be ready. Some builders even offer a completion date within the next 30 days, allowing you to close on your new construction home within a shorter timeframe.

Conclusion

In conclusion, new construction homes offer several advantages when it comes to securing a better interest rate and increasing your buying power. Builders' incentives, such as lower interest rates and contributions towards closing costs, can save you thousands of dollars in the long run. Additionally, many new construction homes in the Warner Robins area are already completed or will be completed soon, eliminating the need for a lengthy waiting period.

If you're interested in exploring new construction homes and taking advantage of these incentives, reach out to me. I can provide you with specific homes and the latest promotions from builders. Don't let high-interest rates deter you from purchasing your dream home. With new construction, you can get more house for your money and potentially save thousands of dollars in the process.

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