5 Ways to Beat Rising Rates & Lower Your Mortgage Payment
- Buy Points Discount points can help lower your interest rate upfront. It generally takes one discount point to decrease an interest rate by roughly 0.25%.
- Improve Credit Though each individual borrower’s situation is different, most people can get a lower interest rate if they have a higher credit score.
- Explore Adjustable-Rate Options Oftentimes, adjustable-rate mortgages (ARMs) are offered at lower introductory rates than fixed-rate mortgages. The introductory period usually lasts for 7 or 10 years. They have become increasingly popular recently.
- Mortgage Payment Buydown. The Mortgage Payment Buydown can help reduce the impact of higher rates by giving home buyers a lower payment on their mortgage for up to three years.
- HomeFundIt™ A higher down payment can help lower your payments. With this easy-to-use online platform, home buyers can build a customized contribution campaign, raise down payment gifts, and accept contributions from anyone with a credit or debit card. For first-time buyers, every gift earns a 2-to-1 match, up to the lesser of $2,000 or 1% of the purchase price*.
There are still ways that we can help make home buying
more affordable – even with high rates. Contact us to explore other options.
*Grant is a $2-to-$1 match on regular down payment gifts received on HomeFundIt, up to the lesser of $2,000 or 1% of purchase price for first time buyers, as defined by Fannie Mae, who complete homebuyer education prior to signing a purchase contract. Talk to your loan officer or visit your HomeFundIt dashboard for next steps, or you can also find a housing counselor near you by visiting https://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm. Grant funds are applied to nonrecurring closing costs. If closing costs are fully paid by seller or interested party, grant funds can be used to buy down the rate. Grant funds cannot be used towards a down payment. Visit https://homefundit.com/Terms for complete terms and conditions.