Real Estate Riches: How to Become Rich Using Your Banker\'s Money After several years of a booming real estate market - one that was decidedly to the seller’s advantage - the industry has taken a swing in the opposite direction in recent months. Higher interest rates and a greater inventory of houses is pushing the market in the buyer’s favor. This means that enterprising individuals ready to make a purchase may come away with more than just a good bargain.

To entice people to take out mortgages in spite of rising interest rates, some lenders and builders are offering special programs. Many home builders are using “buy-down” programs, in which they buy down a mortgage by two percentage points in year one and one point in year two. This can lead to substantial savings. But watch out for deals that offer flashy savings early on but sucker-punch you later during the loan term. Pre-payment penalties or early termination fees may be in store for those who don’t do their homework before signing on the dotted line.

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