Buying a home right now is tough, but we can help. Reach out for no-pressure guidance. Hit the "Get in Touch" button below to schedule a deeper conversation.

1 You can “buy down” a mortgage rate

High mortgage rates mean higher monthly payments — possibly too high for you. However, you can efectively lower your monthly payment by “buying down” the mortgage rate. There are several ways to do this:

• Paying points: In many cases, you can pay 1% of the loan amount up front to lower your rate by .25% for the duration of the loan. This can reduce your monthly payment meaningfully if you have a little extra cash.
• Seller-paid buydown: It may be possible to negotiate a rate “buydown” paid by the seller. Here, the seller credits you an amount at closing that is placed into an escrow account your lender draws from over a set period of time, usually 1-3 years, reducing the amount you need to pay each month. Many sellers prefer this to reducing the sale price of their home.
• Lender-paid buydown: This is typically done via what are referred to as “3-2-1” or “2-1” mortgages, in which the lender pays to e ectively lower your monthly payment for the first 1, 2, or 3 years of your term. This is not an adjustable rate mortgage (an ARM), but rather an upfront credit o ered by lenders that is applied monthly for a period of time.

2 You may be able to get grants or low to no-interest loans to helpwith your down payment or closing costs

• There are over 2,000 down payment assistance and closing cost programs in the United States, and many right here in (City, county, town, region).
• You may or may not qualify, but it’s worth checking, as most buyers don’t even know these programs exist. 
• Down Payment Resource, a company that tracks these programs across the country, makes it easy for you you can do a quick search of programs and check your eligibility.

3 You may be able to refinance to a lower rate in the future

• There’s an old saying in real estate: “Marry the house, date the rate.” It’s misleadingly simple, but does contain an element of truth.
• The average rate for a 30-year mortgage rate was less than 3% in early 2021. It is now over 7%. Many economists expect rates to continue to increase in the coming months as the Federal Reserve attempts to curtail inflation. At a certain point, this could place the economy into a recession, which typically induces the Fed to reduce interest rates.
• Of course, it is possible that rates remain high over a long period of time. There is a lot of uncertainty in forecasting this, so proceed with that understanding, and talk to a mortgage professional before making any assumptions.

Take Action: Hit the "Get in Touch" button below to schedule a deeper conversation.