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.
