Video
February 21, 2025
Airs live on YouTube
February 21, 2025
Mortgage Rates Got You Down? Here’s How to Make Homeownership More Affordable
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We had some nice movement on interest rates this week, dipping below 7%. That’s progress, and you should take advantage of it. The market is holding steady, and if rates are under 7%, this could be your opportunity to buy.
Why Now is the Time for You to Buy a Home
Now, enough about rates. If you’re waiting to buy a home, you might end up paying more later. Many buyers like you are stuck in the no-go zone, unsure about affordability, high interest rates, and making the wrong decision. But hesitation based on fear could cause you to miss out on a great opportunity.
"Let Them" by Mel Robbins explains why people feel stuck when making big decisions. Right now, you may feel uncertain about affordability and afraid of making a mistake. But here’s the reality:
💡 Your hesitation is likely based on assumptions that may not be true. Once you understand your options, homeownership can become much more achievable.
One way to break through this uncertainty is by rethinking how you approach home buying. Here are two strategies that can help you move forward:
✅ The ABC Loop, which explains why buyers like you get stuck
✅ A financing strategy that builders are using to help buyers afford homes today—one that you can use too
The ABC Loop: Why You Might Be Stuck on the Sidelines
A = Assumption: “Rates are too high; I can’t afford a home.”
B = Behavior: You stop looking, delay getting pre-approved, and stay in your rental longer than necessary.
C = Confirmation: You see headlines reinforcing your fears and think, “It’s not the right time.”
And just like that, you stay on the sidelines while others take action.
The 2-1 Buydown: How You Can Lower Your Monthly Payment
Homebuilders aren’t waiting for rates to drop—they’re offering solutions to help buyers afford homes now. And guess what? You can use the same strategy when buying from any seller.
Here’s how a 2-1 buydown works for you:
1️⃣ Year 1: Your mortgage rate is 2% lower than today’s rate, which means a much lower monthly payment.
2️⃣ Year 2: Your rate is 1% lower than today’s rate, keeping your payment more manageable.
3️⃣ Year 3 and beyond: Your rate adjusts to today’s level, but by then, you’ve built equity and may be able to refinance to an even better rate.
📌 Best part? If you negotiate a seller-paid buydown, you don’t have to pay for it. Many sellers are already offering concessions, so you can use them strategically to lower your monthly payment.
Why Buying Now Could Be the Smartest Move for You
If you wait for rates to drop, you might end up paying more for the home itself. Home prices continue to rise, and delaying your purchase could mean paying a higher price later.
Before deciding to wait, ask yourself:
💡 Would you buy now if your payment was lower for the first two years?
💡 What if the seller covered the cost of a 2-1 buydown?
💡 What if waiting means missing out on today’s home prices and paying more later?
If you shift your mindset, you can change your future.
Take the time to understand your options, crunch the numbers, and see if this is the right time for you. Homeownership is possible, and there are solutions to make it more affordable today.
Featuring:
The information contained is the viewpoint of the presenter(s). Individuals should consult their own financial representative.
Estimated Mortgage Payment is for exemplary purposes only. Contact a licensed loan officer for exact numbers and APR. Additional rates and terms may apply and are subject to change without notice. Loan scenario assumes a purchase price of Zillow's list price and a 10% down payment. Points and fees not included. Property tax, homeowners insurance, mortgage insurance, and HOA fees are approximate and may vary. Other fees may apply. Product displayed is a conventional 30-year fixed rate mortgage using the current average rate as shown on Mortgage News Daily (mortgagenewsdaily.com).
Estimated Qualifying Income assumes a homebuyer has a FICO score above 740, no other credit debt, and a debt-to-income (DTI) ratio of 43%.
For exact numbers and APR or to run a loan scenario based on your own credit and income, contact our office at (858) 259-8700.
Rate Source: Mortgage News Daily. Rates displayed are approximate, subject to change, and do not necessarily reflect rates available to you. MND’s methods involve an objective component based on lenders' raw prices as well as a subjective impression from their network of originators. For more information about how these rates are calculated, visit www.mortgagenewsdaily.com/mortgage-rates/about.
Mortgage News Daily (MND) is a trademark of Brown House Media, Inc. Zillow is a trademark of Zillow, Inc. CrossCountry Mortgage has not been authorized, sponsored, or otherwise approved by Brown House Media, Inc. or Zillow, Inc.
Equal Housing Opportunity. All loans subject to underwriting approval. Certain restrictions apply. Call (858) 259-8700 for details. All borrowers must meet minimum credit score, loan-to-value, debt-to-income, and other requirements to qualify for any mortgage program. CrossCountry Mortgage, LLC is an FHA Approved Lending Institution and is not acting on behalf of or at the direction of HUD/FHA or the federal government. CrossCountry Mortgage, LLC is not affiliated with or acting on behalf of or at the direction of the Veteran Affairs Office or any government agency. Certificate of Eligibility required for VA loans. By refinancing, the existing loan total finance charges may be higher over the life of the loan.
