Buying a home may feel harder right now because of rising mortgage rates. But the truth is, with the right plan, you can still make it happen. Here are five practical steps that can help you purchase a home while keeping your costs down.
1. Consider Fixer-Uppers
Homes that need updates or repairs often come with lower price tags. These are sometimes called "fixer-uppers." If the house has a solid structure but outdated features like an old kitchen or bathroom, it could be a smart buy. Renovating over time can increase the home's value—and save you money up front.
Tip: Focus on homes in good condition overall but that may need cosmetic updates. You might be surprised by what a fresh coat of paint and some small improvements can do.
2. Increase Your Down Payment
The more you put down at the beginning, the less you’ll have to borrow. That can mean lower monthly payments and potentially better loan options. Try to cut small expenses and save regularly. Even small daily changes can lead to big savings over the course of a year.
Example: Saving $5 a day adds up to $1,800 in just one year. That money could go directly toward your down payment.
3. Explore Adjustable Rate Mortgages (ARMs)
An adjustable rate mortgage (ARM) may offer a lower interest rate for the first few years. This could be a good fit if you plan to move or refinance before the rate adjusts. Just make sure you understand how much the rate can change and what your payments could look like in the future.
4. Use Points to Lower Your Rate
Some buyers choose to “buy down” their interest rate by paying more upfront, which can lower monthly payments over time. This is done through something called mortgage points. It’s not the right choice for everyone, but it’s worth discussing with your lender to see if it works for your budget and long-term plans.
5. Consider Co-Buying with a Trusted Partner
Buying a home with a friend or family member can help increase your buying power. Two incomes may qualify for a larger loan, and you can share monthly costs. Be sure to have clear agreements in writing about responsibilities and future plans.
Final Thoughts
Even with higher interest rates, buying a home is still within reach. With the right strategy, you can move forward with confidence.
- Be open to fixer-uppers
- Save more for your down payment
- Ask your lender about ARMs and rate buy-downs
- Think about partnering with someone you trust
Now is still a smart time to buy—especially before prices or rates change again.Ready to take the next step toward homeownership? Let’s schedule a quick call to explore your mortgage options today.