With higher mortgage rates, many people are sitting on the sidelines and choosing not to purchase a home as the payment is high. Here are some suggestions to get a lower payment.

If the seller has a VA or FHA loan, you may be able to assume their mortgage, and their low interest rate. So, if the seller has a 4% rate, or a 3% rate, you may be able to take over that mortgage. If you are looking to purchase a home and assume the seller’s mortgage, contact us and we can help you.

You can buydown the rate. You can pay for a permanent rate buydown by paying discount points to get a lower rate. Or, you can temporarily buydown the rate. Temporary buydowns reduce the rate for a year. For example, a 3/2/1 buydown reduces the rate by 3% in the first year, 2% in the second year and 1% in the third year. The temporary buydown gives you just that, a temporarily lower rate. If you’re lucky and rates come down, you can refinance later and keep the lower rate. Click here for our video and blog on buydowns: https://counselmortgagegroup.com/buydowns-first-time-homebuyer-video-series/

Another way to reduce your payment is to put more money down. The money can come from your savings or checking. A gift from a relative also qualifies. Or, if you have a 401(k), you can borrow against it for a bigger down payment, and then pay yourself back.

A fourth way is to maintain a great credit score. The better the credit score, the lower the interest rate, and the lower the payment. One way to get a good credit score is to keep low balances on credit cards. Credit utilization ratio can have a big impact on your credit score.

If you want to buy a home, and are looking for a lower payment, give us a call, we can help.