Real Estate Strategies: How 3 Couples Achieved Low Mortgage Rates

Understanding Mortgage Rates and Federal Reserve Actions

Real estate has been profoundly affected by fluctuating mortgage rates in recent years. The Federal Reserve's role in controlling interest rates has led to significant changes. In 2021, rates hit a low of 2.1%, but inflation caused the Fed to implement hikes that pushed rates to 7.79% in October 2023.

Assumable Mortgages: A Path to Lower Interest Rates

A lesser-known option, assumable mortgages, allows buyers to take over a seller's existing loan, including its interest rate and terms. This method can drastically reduce interest rates, making monthly payments more manageable.

Financial Benefits of Assumable Mortgages

• Substantial Savings: Couples redirected funds from higher payments into other essential areas.
• Eligibility: Not all loans are assumable; FHA and VA-backed loans qualify.
• Current Trends: As rates decline, more buyers are exploring this option.

2024 has ushered in a slight easing of high rates, with the 30-year fixed-rate mortgage dropping to 6.2%. While rates from 2021 may not return, the trend suggests an opportunity for those looking for creative solutions in real estate.

Inspiring Success Stories

1. Grace Lucchese and Mickey Ricard, a Gen Z couple, opted for assumable mortgages in their journey.
2. They effectively utilized their resources while managing financial responsibilities.
3. Other couples followed suit, discovering ways to lower their monthly payments and enhance their financial well-being.