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Can I buy a new home and keep the mortgage rate I have on my current home? No, unfortunately. But don’t worry, there’s a smarter way to get a lower rate and make your next home purchase more affordable. Keep reading to find out how.

You see, waiting around for mortgage rates to drop back to the ultra-low levels we saw in 2020 and 2021 isn’t the wisest move. Those rates were a product of unique circumstances—government intervention in response to a global crisis. Hoping for a repeat of that scenario isn’t realistic. As of February 2024, the average 30-year fixed mortgage rate sits at around 6.98%, (you can track the national average rates here – https://www.mortgagenewsdaily.com/mortgage-rates/mnd). That high 6 rate is still a far cry from the rock-bottom rates of the past.

So, what can you do to secure a better rate for your new home? How can you purchase a new home with a more affordable payment? The key is to be proactive and strategic. Instead of waiting for another “pandemic”, the government to pause the economy, and then the government to overreact with a ridiculous stimulus, consider a tactic you can act on now – “buying down” the interest rate. This usually involves shelling out some cash, but here’s the kicker: you can negotiate with the seller of your new home to foot the bill.

Yup, you heard that right. As part of your purchase agreement, you can ask the seller to chip in funds to lower the interest rate on your new mortgage. A skilled real estate agent can work wonders in negotiating on your behalf. By building rapport with the seller’s agent and understanding their needs, your agent can broker a deal that benefits everyone involved. The seller gets some things they want out of the deal, and you get thousands from the seller to use at closing to buy down the interest rate on your new home loan. This seller contribution depends a lot on the purchase price and the state of the market, but it is not uncommon to see a seller credit of $5000 or more on real estate contracts in Arizona. That can go a long way in getting you a lower interest rate.

But what if that isn’t good enough? How can you get even more money to buy your interest rate down further? Work with Stewardship Realty as your real estate agent (https://stewardship.pro/buy-a-home/). At Stewardship we have a refreshing approach to buying a home that give you thousands of dollars from our commission to use at closing. That’s right, we give all of our clients 20% of our real estate commission as a gift to use at the closing table. A combination of the seller contribution and the real estate commission gift can buy your interest rate down way below the current market rate and ensure your new home mortgage payment is a lot more affordable. Talk about a win-win!

But wait, there’s more. A top-notch agent doesn’t stop at negotiation or a gift of commission—they actively seek out opportunities to maximize value for their clients. Whether it’s uncovering special incentives from builders or capitalizing on limited-time offers, a proactive agent can help you capitalize on available resources to secure a more favorable interest rate. Here is an example: last week we were in contact with a seller of 24 homes that let us know they are willing to give buyers $20,000 to use at closing should they get in contract before Valentines day of 2024. With that money a buyer can buy their rate down all the way to the low 5s or high 4s. That is much better than the going high 6s or low 7s.

So, while you can’t take your current interest rate with you to a new home, you can certainly embark on your homebuying journey with confidence. By hiring a savvy real estate agent and exploring creative solutions, you can snag a lower rate and make your next home purchase a reality. Sure, the super-low rates of 2020 and 2021 might be a thing of the past, but with a little ingenuity, you can still score a rate that works for you.

You do not have to wait for another government stimulus. With the right approach, wisdom, and a great real estate agent, you’ll be well on your way to a new home with a great rate.

If you would like to talk about the how much you could get as a seller credit, or what type of interest rate you could get with our real estate agent commission gift – give us a call or send a text to 602-384-2604