11/08/2025
Are you considering entering the market to buy a home?
Your rate is an important factor in your decision making on whether you can afford to purchase a home in your market. It’s also a reason most buyers are not entering the market the past few years. At the beginning of 2025, rates were hovering around 7%. They have made their way back down around 6.17%. With that said, a lot of buyers will probably continue to wait, to hold off on rates improving further. Which is only a bad idea, if you can afford to buy now.
As more buyers enter the market, that means more competition. Driving prices higher, giving more leverage to sellers, and fighting with multiple offers. You can also refinance within 6 months of purchasing a home. Purchasing right now allows you to lock in the prices we are seeing currently, while allowing you to refinance within the next year, as rates may improve.
Here are 5 tips to lower the rate now.
1. Increase your down payment - the more money you can afford to put down, the lower your monthly payment will be.
2. Raise your credit score - consumers need a FICO score of 760 or higher to be eligible for the lowest mortgage rates on a conforming loan.
3. Shop around - make contact with multiple lenders or with a mortgage broker that can shop around for you for the best rates.
4. Consider a 2/1 or 3/1 buydown - The interest rate on your mortgage is temporarily reduced for the first few years — usually paid for upfront by the seller or sometimes the buyer. After that, the rate returns to the full note rate for the remainder of the loan.
5. Lock in the best rate - A mortgage rate lock allows you to lock it in for a set period — typically 30, 45 or 60 days — from the time you receive a conditional loan offer from a lender to when you close on a home.
If you would like to chat about the market, whether you are considering buying or selling, I would love the opportunity to provide some guidance! We can always meet for a coffee, hope on a call or meet virtually if necessary!
Hope this gives you some things to think about, while making the best decision for yourself!! God Bless!!
