Three ways to combat rising interest rates when trying to buy a home.
Are you wondering how to buy a home when interest rates are rising? There’s no denying that this upward trend makes homeownership less affordable. Fortunately, there are plenty of ways to get creative when dealing with high interest rates. Here are three things you can do to increase your chances of getting a lower rate:
1. Look at your debt-to-income ratio. This is what banks and mortgage lenders look at when they’re lending you money and looking at rates. See if there’s a way you can decrease your amount of debt because if you have less, you’ll likely qualify for a better rate.
“There are plenty of ways to get creative when dealing with high interest rates.”
2. Lock in your interest rate. If you are offered an opportunity to lock in your interest rate, take advantage of it so you know what to expect and you’re getting a rate that’s right for you. This helps you avoid the chance of your rate increasing! However, only do it if you are serious because the rate can only be locked for a certain amount of time.
3. Take advantage of discount points. These are fees that you can pay to lower your interest rate. You will always want to double-check these things with your CPA, but there are options for buying down your rate. You can have your local mortgage lender or bank help you see what opportunities there are in your situation.
Combating high interest rates may seem tricky, but these strategies could help. We know it can be hard to buy, and we want to walk you through it! If we can help you with anything at all, feel free to call or email us. We look forward to hearing from you.
