How To Overcome High Rates As A Homebuyer

How To Overcome High Rates As A Homebuyer

Are high rates keeping you from buying?

So many buyers are afraid to buy a home right now because the rates are higher than they were during Covid times. I get it… the rates aren’t the low 3s that they once were (or even the 2s if you were lucky enough). But there are ways that you can get a lower rate and get the house of your dreams! You just have to be open minded and negotiate a little bit.

Buying New Construction

Do you think you can’t afford a new construction home? Well, think again! A lot of builders are offering to help buy down your rate and potentially offer other nice incentives! For example, some are offering to pay for your attorney fees, some of your HOA fee and potentially even some of your property taxes! Not all builders are the same, so you need to do some research as to the different incentives available across the board. Remember that in some very popular locations, the builders may not be hurting for business and may not offer as many incentives. Do your homework for the best deal!

Negotiating A 2-1 Rate Buy Down

A 2-1 rate buy down may even work when buying a resale home! There are times when a seller may potentially help to buy down a buyer’s rate as a nice incentive. Keep in mind once again, that homes which are in a high demand area may not need to make these types of negotiations to get the house sold. You may need to try this strategy with homes that are in less popular areas or homes that have been sitting on the market for a while. If you never try, you’ll never know. Just keep your expectations in check when in popular, high demand areas.

Lender Paid Refinance

The good news is lenders want your business right now and many of them are offering to pay for your refinance down the road when the rates come down! Different lenders have different terms, so you really need to do your homework. And if your lender refuses this option, perhaps you need to find one that will! Do the math on what it will cost you now and long term overall. Pay attention to the numbers… it could save you thousands!

Don’t Forget…

As a homebuyer you can still buy when rates are a little higher. If you truly need a home, then try one of the strategies above. BUT if you’re thinking you’ll get a deal on a house when the rates come down… then I’ll simply remind you of the feeding frenzy that happened when the rates were low before! Lower rates mean more buyers in the marketplace, means more competition, means potentially higher home prices, means potentially losing out on more houses!  Be open to buying now and refinance later when the rates come down!


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