Spiking interest rates on home mortgages (that in September topped 6 percent for the first time in nearly 15 years) have led a growing number of recent homebuyers to find creative ways to pay for their new homes with cash.
An Example? You can use personal savings, take out a loan using stock as collateral, and receive an adjustable rate based on the federal-funds rate plus a 2.25 percent margin. Some other alternatives to finding cash to pay for a home include taking out loans against other assets, seller financing or borrowing money from families and friends.
But alternative financing doesn’t come without downsides – such as the loss of mortgage interest deductions — for buyers. Anyone considering alternative financing techniques is encouraged to first seek the help of financial advisers.
Residential sales fall 30% across South Florida
The residential market in South Florida continued to take a beating in October.
Residential closings fell nearly 30 percent, year-over-year, across Miami-Dade, Broward and Palm Beach counties to 6,216 sales, according to the Miami Association of Realtors, which only tracks sales recorded on the Multiple Listing Service. That follows a 20 percent drop in August and a 25 percent drop in September as the Federal Reserve continues to hike interest rates in its attempt to tamp historic inflation.
Closed dollar volume fell 20 percent to $4 billion in October across the tri-county region, compared to the $5 billion recorded in October of last year.