"The key to success is to start before you are ready.” - Marie Forleo

Hey Everyone,

Welcome to this week’s edition of The Ridgeline Rundown!

Tired of waiting for rates to drop? This week, we're diving deep into "How to Buy a Home Without Waiting for Lower Rates." We'll explore creative strategies, financing alternatives, and negotiation tactics to help you secure your dream home NOW, regardless of the current market.

And to fuel your house-hunting journey, we're featuring American Classic Coffee Company! Discover their rich, flavorful brews and support a fantastic local business that's perfect for your morning boost or a cozy afternoon break.

As always, I'm your go-to real estate resource. If you're ready to take the leap into homeownership, don't let interest rates hold you back. Let's chat about your options!

Mortgage Minute

Mortgage rates dropped a noticeable 0.22% in 4 days, a big move lately. It's odd because there weren't major economic events driving it. Basically, people are buying bonds, likely worried about the economy. This trend will either be proven or disproven by upcoming data.

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The Insider’s Guide to Real Estate | Tips

How To Buy a Home Without Waiting for Lower Rates

Many people are hoping mortgage rates will come down before they buy a home. But will that actually happen? According to the latest forecasts, experts say rates will decline, but not by as much as a lot of people want.

The good news? Even if they don’t drop substantially, there are still ways to make buying a home more affordable.

How Much Will Rates Drop?

A few months ago, experts were forecasting mortgage rates could dip below 6% by the end of the year. But recent projections suggest that may not happen after all.

While mortgage rates are still expected to decline some later this year, projections from Fannie Mae, the Mortgage Bankers Association (MBA), and Wells Fargo now show them stabilizing closer to 6.5% by the end of the year (see below):

That means if you’re holding off on buying a home in hopes of much lower mortgage rates, you may be waiting a while. And if you need to move because something in your life has changed, like a new job, a new baby, or a marriage – waiting that long may not be an option.

Creative Financing Options in Today’s Market

Since rates aren’t expected to decline as much as originally expected, it may be worth considering alternative financing options that could help you get into a home sooner rather than later. Here are three strategies to discuss with your lender to see if any of these make sense for you:

1. Mortgage Buydowns

A mortgage buydown allows you to pay an upfront fee to lower your mortgage rate for a set period of time. This can be especially helpful if you want or need a lower monthly payment early on. In fact, 27% of agents say first-time homebuyers are increasingly requesting buydowns from sellers in order to buy a home right now.

2. Adjustable-Rate Mortgages

Adjustable-rate mortgages (ARMs) typically start with a lower mortgage rate than a traditional 30-year fixed mortgage. This makes them an attractive option, especially if you expect rates to drop in the coming years or plan to refinance later.

And if you remember the housing crash, know that today's ARMs aren’t like the risky ones back then. Lance Lambert, Co-Founder of ResiClub, helps drive this point home by saying:

“. . . ARM products today are different from many of the products issued in the mid-2000s. Before 2008, lenders often approved ARMs based on borrowers ability to pay the initial lower interest rates. And sometimes they didn’t even check that (remember Ninja loans). Today, adjustable-rate borrowers qualify based on their ability to cover a higher monthly payment, not just the initial lower payment.” In simple terms, banks used to give loans without checking to see if buyers could afford them. Now, lenders verify income, assets, and jobs, reducing the risks associated with ARMs compared to the past.

3. Assumable Mortgages

An assumable mortgage allows you to take over the seller’s existing loan — including its lower mortgage rate. And with more than 11 million homes qualifying for this option according to U.S. News, it’s worth exploring if you want or need a better rate.

Bottom Line

Waiting for a big decline in mortgage rates may not be the best strategy. Instead, options like buydowns, ARMs, or assumable mortgages could make homeownership more affordable right now. Connect with a local lender to explore what works for you.

How does this impact your homebuying plans this year?

Featured Business: Local & Veteran-Owned Spotlight!

Colorado Springs Social Scene

Military News and Updates

Skiers honor victory, sacrifice of 10th Mountain Division at Ski Cooper 80 years after Riva Ridge

SKI COOPER • A blend of skiers, in white, camouflage, drab olive and neon, with an array of flags fluttering above them flowed down to the base of Ski Cooper Friday to memorialize the victory and sacrifice of the 10th Mountain Division soldiers who fought in World War II.

The skiers followed a snaking path down the hill, filling it with their flags and large numbers, as a crowd waited at the bottom with phones in hand to capture the procession through the soft fluffy snow.

Feel free to reach out with any real estate questions—I’m here to help, no matter the state!

Referrals are the biggest compliment, so send anyone my way. Until next time!