The Federal Reserve’s pause on interest rate hikes is a boon for foreign nationals and U.S. expat investors looking to obtain a U.S. mortgage. With interest rates on hold, investors can lock 30-year and potentially 40-year fixed rate mortgage loans with lower borrowing costs, which can save them thousands of dollars over the life of a loan. This is especially important for investors who are looking to use leverage with rental properties, as the lower interest rates will help to boost their cash flow.
The interest rate pause is a limited-time opportunity for investors to take advantage of these benefits. If you are considering buying an investment property in the U.S., now is the time to “marry the property and date the rate.“
Here are some of the positive ways that the interest rate pause can benefit foreign nationals and U.S. expat investors:
Overall, the interest rate pause is a positive development for foreign nationals and U.S. expat investors who are looking to buy investment property in the U.S. As rates increased, the FOMO frenzy has died down allowing investors time to search for the right property and not get involved in bidding wars.
Although interest rates are slightly higher than they were during the pandemic, they are still historically low when compared to historical 30-year mortgage data, as below:
Another advantage for overseas investors is that the housing market in the U.S. is currently a buyer’s market, as with the current interest rate there may not be as many owner-occupied buyers as there were when interest rates were at their lowest. This makes it an excellent opportunity for real estate investors to be able to negotiate not only on the price but potentially on the closing cost or certain contingencies with the property. This itself exceeds any benefit of potentially lower interest rates as your rate can be lowered with a refinance down the road when interest rates do decrease.
At America Mortgages, we offer a variety of flexible loan products that can be tailored to your specific needs. We understand that not all investors are the same, and we want to make sure that you get the loan that is right for you. If you are a foreign national or U.S.
expat investor who is interested in learning more about the interest rate pause and how it can benefit you, please us at [email protected] today.
This is all we do, and no one does it better. We would be happy to discuss your options and help you to find the right investment property for your needs. Connect with us today!
