December is the sleeper month of financing — and almost nobody talks about it.

While buyers focus on holidays, lenders focus on closing year-end volume.
These incentives create a December opportunity that rarely exists in the spring.

Right now, Pasadena and LA buyers are scoring cheaper payments, better credits, and more aggressive interest-rate structures — not because the market magically changed, but because lenders want numbers on the board.

Here are the December financing strategies delivering the greatest impact.

1. Lender Fee Reductions (End-of-Year Volume Push)

Many lenders discount or eliminate:

• Origination fees

• Processing fees

• Underwriting fees

• Appraisal fees

This can save buyers $1,500–$3,000 instantly.

2. The 2-1 Buydown Is More Popular Than Ever

December buydowns work because:

• Sellers are more willing to offer credits

• Lenders have more flexibility

• Buyers want short-term payment relief

On a $1M loan:

• Year 1 payment drops by ~$1,100/mo

• Year 2 drops by ~$560/mo

By the time the rate resets, many buyers refinance anyway.

3. Temporary ARM Structures with Safety Caps

Today’s ARMs are not the 2006 ARMs.

They offer:

• 7–10 years of stability

• Reasonable caps

• Lower introductory rates

• Predictable adjustments

This is perfect for buyers planning to move again within 7–10 years — like many in Pasadena, Highland Park, and Silver Lake.

4. Seller Credits Are Easier to Secure in December

Sellers want clean year-end closes.
That urgency creates leverage.

Common December credits:

• 2–3% back for rate reductions

• Credit for repairs

• Credit for closing costs

• Buydown assistance

I recently secured $19,000 in seller credits for a Pasadena buyer — simply because it was December.

5. Holiday Time = Faster Underwriting

Underwriters have:

• Fewer files

• Smaller queues

• Faster turn times

Escrows that take 30 days in spring can close in 18–21 days in December.

FAQ

Q: Are December rates always lower?
A: Not always — but incentives make the effective cost lower.

Q: Should first-time buyers purchase in December?
A: Yes — the financial advantages are real and measurable.

Explore December lending options with Jason Bergman – The Agency Pasadena.