Over the course of decades, many families and individuals find themselves in the position of needing to move into a new home while still having to sell the old one. For some, this is due to relocation for a job or family member. For others, it could be because your family has grown or you are caring for older relatives at home. Regardless of the reason, you’re doing two stressful life events at once: putting a house on the market, and getting into a new one.
When it comes to getting a mortgage for your new home and considering average daily mortgage rates, how do you make this happen? Let’s look at the details of this very common situation.
The average daily mortgage interest rate for Friday, February 2, 2024 is 6.92% for a 30 year fixed rate. The rate rose 0.29% from yesterday and 0.20% from last month. This information is sourced daily from correspondent, retail, and wholesale lenders located in the United States.
Lenders in the freerateupdate.com network are currently offering rates as low as 5.9% (6.1% APR) on a 30-year fixed-rate mortgage. Receive a rate up to 1.02% lower than today’s average 30-year mortgage rate if you qualify. ⓘ
The average daily mortgage interest rate for Friday, February 2, 2024 is 6.25% for a 15 year fixed rate. The rate rose 0.30% from yesterday and 0.21% from January 2024. This information is sourced daily from correspondent, retail, and wholesale lenders located in the United States.
Lenders in the freerateupdate.com network are currently offering rates as low as 4.9% (5.2% APR) on a 15-year fixed-rate mortgage. Receive a rate up to 1.35% lower than today’s average 15-year mortgage rate if you qualify. ⓘ
How to plan for buying and selling homes at the same time
To start, let your real estate agent and your attorney know about the plan from the start. They’ll want to know what you have to work with – after all, your home, especially if you own it free and clear – is an asset.
You’ll also need to have some savings set aside. While it’s tempting to put all of your money towards a down payment, if you buy before you sell, or if your move-in date is months after your sale date, you’ll need to have money to work with. You’ll use this money to take care of expenses that may come up, such as rent, storage fees, and more.
If you’re like most people, you rely on the value of your current home to put towards the new one. Unfortunately, a seamless transition rarely works. What you can do is include a contingency in your contract. This means if your current home doesn’t sell, you aren’t obligated to proceed with the new home. This is especially important if you’re still financing your current home. “Financing contingency” is incredibly common. While you do this, don’t forget to keep your credit in top shape.
How your real estate agent can help
Your real estate agent can prioritize closing dates on both the sale of your old home, and the entry of your new one. While you’ll have to be flexible with your schedule, the right agent should help you out here.
You should also talk about backup plans with your real estate agent. Can you afford to rent for a few more months while you figure it out? How much are you willing to slash the price on the home you’re selling? These factors can help you and your agent figure out how flexible you will need to be with your schedule as you embark on this process.