Hey everyone… I’m in a bit of a dilemma and could really use your advice. I found this amazing condo in the richest county in America for $574k. When I first started the process, the lender had a promotion that would buy down enough points to give me a 3.5% interest rate. This would have resulted in a mortgage of around $3,600 each month, including HOA fees.
However, due to some construction issues, the lender is now saying they can’t honor the 3.5% rate anymore. Instead, they’ve offered a rate in the low 5% range. Given this change, I’m seriously considering whether I should try to back out and get my $25k earnest money back or go through with the purchase.
What would you do in my situation? Does it make sense to renegotiate, find a different property, or just stick it out? Any advice or personal experiences would be greatly appreciated!
Honestly, I’d try to get your earnest money back. A jump from 3.5% to the low 5% range is a big deal. You might find a better deal elsewhere, especially if you’re in a hot market.
I agree with the previous comment. Interest rates can really impact your monthly payment and overall budget. Plus, you have $25k on the line. It’s worth considering your options.
Toryn said:
I agree with the previous comment. Interest rates can really impact your monthly payment and overall budget. Plus, you have $25k on the line. It’s worth considering your options.
Yeah, that’s what I’m thinking too. I really don’t want to throw away that money for a higher rate.
If it were me, I’d definitely try to renegotiate. See if they can offer any incentives or help lower the rate somehow. You might be able to make it work.
I had a similar situation a few years back. My lender changed the terms on me, and I ended up finding a better place later on. It’s tough, but sometimes a fresh start is best.
Piper said:
I had a similar situation a few years back. My lender changed the terms on me, and I ended up finding a better place later on. It’s tough, but sometimes a fresh start is best.
That’s comforting to hear. I’m just worried about the hassle of starting over.
Make sure you read the fine print. Sometimes earnest money can be tricky to get back, especially if you’re in a contract. Consult with your agent before making any moves.