A new emerging trend might put more buyers at ease, giving them peace of mind. Mortgage lenders are getting creative and finding unique ways to place buyers into homes.

Does the phrase buy now, pay later ring a bell? Well, this new concept sounds similar, but not quite. Some lenders are getting homes closed by allowing buyers to close on a home in today's market while offering an incentive for them to refinance later down the road for free. It's no secret that interest rates have climbed over the years yet are still historically low. Lenders are trying to combat the rise of inflation and rates with unique incentives.  

Predicting future mortgage rates is nearly impossible; this incentive allows buyers to secure today's rates even if rates continue to fluctuate, with the added benefit of refinancing if the rates lower down the road.

This incentive is a great way to lock in a free, future refinance deal for buyers who are on the fence. Buyers need to remember that they should ultimately decide to buy based on their current finances and see this incentive not as a savior but as an extra perk.

Remember, it's imperative to understand and read the fine print of terms. Lenders may offer exclusions or specific criteria to take advantage of this incentive. For example, there may be some fine print that states that the same lender must be used when refinancing. There may be a waiting period of at least six months before buyers are eligible to refinance. Take time and understand all the incentive details before agreeing to the terms. 

The option to refinance later for free could be the perfect opportunity to give buyers that extra nudge and purchase their dream home now.

Samantha Minns
RWorld Content Writer
✉️ Email

Source: Florida Realtors®