Like you, I'm enjoying some cooler weather for a change but like you, what I don't enjoy are rising costs - at the gas station, grocery store or just about anywhere. The good news is we've seen positive signs that our take home pay is growing faster than inflation, but there's no hiding the two years it didn't and the impact that's had on our credit card usage and savings. 

Then, if you're a potential homebuyer, there are the mortgage rates of today vs. the rates you'd have LOVED to have taken advantage of two or more years ago. I hear it often: "these rates are too high!"

There's no point arguing with anyone who says that, because for them, they're right. Historically, current rates are on par with prior generational home purchase rates (think:"your parents") and better than rates buyers experienced before that (think: "your grandparents") but home prices aren't always showing an adjustment to counter-act, either. 

So how do you "chop down" that rate, exactly?

The same way you take down a giant tree in your yard.

I remember, as a kid, we had a couple of very tall pines out of our back yard, and the process kind of fascinated me. I watched as a tree removal professional would carefully shimmy up the tree and start by whittling away at the higher branches before shimmying down a bit, continually whittling away at the tree before it was safe enough to take out the whole thing.

Honestly, that's the same way to combat your mortgage rate. Seriously.

For example, a home I've listed - 962 Rittenhouse Way, Atlanta GA 30316 - qualifies for one of two 0% down payment options WITH no PMI (private mortgage insurance) - and it's not the only home that does. Usually, PMI goes away after you've paid about 20% of a mortgage, but if you're putting 0% down, you're nowhere near that, so a program where you put nothing down AND don't have to pay PMI is already a pretty cool way to lower your monthly mortgage payment. Hear that chainsaw whittling away at the giant pine? 

There's also the option of a rate buy-down (by the buyer and/or the seller - a good negotiating tactic for either side). Mortgage points are fees a borrower pays a lender to trim the interest on the loan. There's no limit on the number you can buy, but most lenders only let you buy up to four, and they cost about 1% of the home loan. 

If you're negotiating to buy a home, it's not a bad ask to inquire about the seller working with you to bridge the gap in the cost of the home this way. If you're selling a home and you've been on the market awhile, it's not a bad idea to consider offering to chip in to aid homebuyers in fighting today's higher rates. 

Buzz Buzz. Down comes more of the tree.

Then, once you're in your home, if rates come down, you can always renegotiate or refinance your mortgage to reflect those lower rates. 

Snap, crackle, down comes more of that once-giant tree.

Many lenders have incentives an programs to get your rate down now and/or later. I've mentioned just a few options that are available to you.

Have questions about 0% down and no PMI? Or if buying discount points makes sense for you, either as a buyer or a seller? Reach out to me. Let's discuss.