10/10/2026
Think today’s interest rates have priced you out of buying a home? You might be overlooking an opportunity!
Higher interest rates have pushed many buyers to the sidelines, but that can also mean less competition and more negotiating power for those still looking. Here’s an example of how that could work in your favor.
Let’s say you’re buying a $500,000 home with just 5% down and a 30-year mortgage at 7.25%. You negotiate $15,000 from the seller, but how you use that money could make a big difference!
Option 1: Reduce the purchase price by $15,000. You purchase the home for $485,000, and your monthly principal and interest payment would be approximately $3,143.
Option 2: Negotiate $15,000 in seller concessions to permanently buy down your interest rate. If your lender could reduce the rate from 7.25% to 6.50%, your monthly principal and interest payment would be approximately $3,002.
That’s roughly $141 MORE in monthly savings than simply reducing the purchase price, or nearly $17,000 in additional payment savings over 10 years!
Here’s the bigger picture. When rates were historically low, buyers were competing with multiple offers and often paying above asking price. Today, some sellers are much more willing to negotiate. And when rates eventually decline, many of those buyers sitting on the sidelines could return, bringing increased competition with them.
Sometimes the best deal isn’t about getting the lowest purchase price. It’s about negotiating the terms that make the most financial sense for you.
If you’ve given up on buying because of affordability concerns, it might be worth exploring your options again. You may have more negotiating power than you realize!
Example assumes 5% down on a 30-year conventional loan. Rates and buydown costs are illustrative, not lender quotes. Payments exclude taxes, insurance, and PMI. Actual savings depend on lender pricing and how long you keep the loan.