Interest Rates Changed. Here’s How We’re Helping Buyers Make the Numbers Work. 🏡

If you've been thinking about buying a home, you've probably been paying attention to interest rates — and you may be wondering whether now is the time to put your plans on hold.

Before you do, there's something important we want buyers to understand:

Interest rates matter. But they're only one part of the equation.

Today's market requires a little more strategy and, in some cases, a little more creativity.

Don't Just Negotiate the Price. Negotiate the Payment.

When most buyers think about negotiating, they immediately think:

“How much can we get the seller to come down on the price?”

That's certainly one option. But it isn't the only one.

Depending on the property, seller, loan program and buyer qualifications, we may be able to negotiate seller contributions toward allowable closing costs or financing expenses — including potentially buying down the buyer's mortgage rate.

And sometimes, that can have a greater impact on a buyer's finances than simply reducing the purchase price.

Here's a Simple Example

Imagine you're considering a home priced at $400,000, and the seller is willing to negotiate $10,000.

You could potentially negotiate the price down to $390,000.

With 5% down and a hypothetical 6.50% interest rate, that $10,000 price reduction would lower the principal-and-interest payment by approximately $60 per month.*

But what if we kept the purchase price at $400,000 and negotiated up to $10,000 in allowable seller contributions instead?

Depending on your financing, those funds could potentially be used toward:

• A permanent mortgage-rate buydown
  • A temporary rate buydown
  • Allowable closing costs
  • Certain prepaid expenses

That's when we bring your lender into the conversation and ask:

“How can we use this seller contribution to create the greatest benefit for this particular buyer?”

Could a 2-1 Buydown Help?

A temporary 2-1 buydown is another strategy we may explore with your lender.

For example, if your mortgage has a 6.50% note rate, a properly funded 2-1 buydown could temporarily calculate payments as though the rate were:

Year 1: 4.50%
Year 2: 5.50%
Year 3 and beyond: 6.50%

The mortgage itself remains based on the actual note rate, and the cost to fund the buydown must be calculated and approved by the lender.

That's why we don't assume one strategy is better than another — we run the numbers.

Seller Contributions Can Help With More Than Your Payment

Maybe lowering your monthly payment isn't your biggest concern.

Perhaps you'd rather keep more cash in your bank account after closing.

If your loan program allows it, seller contributions toward eligible closing costs could potentially reduce the amount of cash you need to bring to settlement.

That could mean keeping more of your savings available for moving expenses, furniture, repairs, improvements or simply maintaining a stronger emergency fund after purchasing your home.

So, Should You Wait for Interest Rates to Come Down?

That's a personal financial decision, and there isn't one answer that's right for everyone.

What we don't want you to do is automatically assume you can't or shouldn't buy simply because of an interest-rate headline.

Instead, let's find out what the numbers actually look like for you.

We'll work alongside your lender to look at your buying power, estimated payment, cash needed for closing and the different ways we might structure an offer.

Then you can decide whether buying now makes sense.

That's Where Your Real Estate Matchmakers Come In. 💕

Finding the house is only part of our job.

We also help you understand the market, identify negotiating opportunities and put together an offer strategy designed around your goals.

Because in today's market...

Don't just negotiate the PRICE.

Negotiate the PAYMENT. 🔑

Thinking about buying? Let's run the numbers before you count yourself out.

The Matchmaker Team of RE/MAX Solutions
Your Real Estate Matchmakers

This information is provided for educational purposes only and is not a loan quote or financial advice. Rates, payments, seller-contribution limits, buydown costs and eligibility vary based on lender, loan program, borrower qualifications and transaction terms. Payment examples shown are hypothetical principal-and-interest examples and do not include taxes, insurance, mortgage insurance, HOA fees or other housing expenses.