CurtisTeam SNMC - Lending a Hand - Episode 3: Kim and Beau Harding

Lending a Hand With The Curtis Team

Host Steve Curtis and guests Kim and Beau Harding engage in a discussion about various aspects of the real estate industry. They delve into topics such as adjustable rate mortgages, creative financing options, and affordability for first-time homebuyers.

The conversation begins with a reflection on the real estate boom in 2003 and the prevalence of adjustable rate mortgages (ARMs) at the time. However, the guests mention that in recent years, fixed-rate mortgages have become the norm, with approximately 90% of homeowner mortgages now being fixed interest rate loans. They explore the possibility of adjustable rate mortgages making a comeback, particularly for homeowners seeking more affordable options in the current market.

The guests inquire about the availability of creative financing vehicles to assist millennials and first-time homebuyers, given the challenges of rising home prices and competition from investors. Steve mentions an older product called a temporary rate buy-down, which acts as a concession from the seller to help ease the buyer’s payment burden for the first two years of homeownership. This allows buyers to gradually adjust to their payment obligations without requiring a reduction in the price of the home. The strategy involves fixing the rate for a specific period, typically two years, and then transitioning to the permanent fixed rate thereafter. Steve emphasizes the importance of educating potential buyers about this option and its potential benefits.

The conversation expands to discuss the broader landscape of the real estate market and the challenges faced by young homebuyers. Steve explains that while prices are difficult to control, there may be opportunities for buyers in the current market, as there is slightly less competition and more inventory available. He highlights the potential of temporary rate buy-downs as a means of making homeownership more accessible to first-time buyers, emphasizing the importance of targeting homes with recent price improvements or reductions.

The discussion touches on other creative financing options, such as subsidies for appraisals on refinancing and ongoing support through marketing campaigns and partnerships with title companies. The guests express their concern for the younger generation of homebuyers, given the recent market dynamics and increasing affordability challenges. They emphasize the need for solutions that balance affordability, price stability, and long-term financial sustainability.

In conclusion, Steve Curtis and his guests highlight the importance of community involvement and long-standing relationships within the real estate industry. They emphasize the value of being plugged into the community and understanding local market dynamics to better serve clients. By exploring innovative financing options and providing educational resources, they aim to empower homebuyers, particularly millennials, to navigate the current market with confidence.