HOW TO BUY A HOME WHEN INTEREST RATES ARE HIGH

Let’s be real—higher interest rates can definitely feel like a hurdle in today’s market, especially with prices still pretty high in many areas. But here’s the good news: there are plenty of ways to make buying work, no matter the rate, so you don’t have to put your homeownership dreams on hold. With the right strategy (and the right agent by your side ), you can still make a smart, successful move.

Here are a few creative ways to keep your payment manageable despite the higher interest rates:

• Get Pre-Approved & Know Your Budget

Having a clear budget helps you make smart, confident decisions. Talking to a lender, exploring different loan options, and getting pre-approved will help you set a realistic max price—so you don’t stretch yourself too thin or end up house-poor.

• Consider Different Loan Options

A 30-year fixed mortgage isn’t your only option! There are adjustable-rate mortgages (ARMs), rate buydowns, and even lender incentives that can lower your monthly payment. A good lender will help you explore the best choice for your situation.

• Buy Down Your Interest Rate

You can pay upfront to lower your rate (and therefore your monthly payment). The best part? In some cases, sellers may cover this cost for you as part of the negotiation.

• Negotiate Seller Concessions

In today’s market, depending on the area, many sellers are open to covering closing costs or even helping buy down your interest rate to make the home more affordable for buyers.

• Don’t Wait for a Lower Rate

f the right house comes along and the payment is affordable (even if the interest rate isn’t ideal), you should buy the house.

If mortgage rates drop, more buyers will jump into the market—meaning more competition and even higher home prices.

 

If you’re thinking about making a move, let’s connect and chat about ways to make homeownership more affordable for you.