Interest Rates

A good reason for including financing information in your offer is to protect yourself. If interest rates suddenly become volatile and rise quickly, as sometimes happens, you could be looking at a mortgage payment much higher than you anticipated. By putting a maximum acceptable interest rate in the offer, you are protecting yourself from such occurrences.

Simultaneously, the seller will probably want to see that you have some flexibility in the financing terms you are willing to accept. If interest rates are currently at six percent and you indicate this is the highest rate you will accept, you would be able to cancel the contract without penalty if interest rates rose above that point. The seller would suffer because they have lost valuable marketing time and may have made their own plans based on successfully closing the transaction.

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