Borrower — Rates Are at a 3-Year High, but Sellers Are Negotiating. Don’t Wait, Negotiate - Here is the math.

Mortgage rates are at their highest in about 3 years, but home sellers in TX, CO & FL are cutting deals. A seller-paid rate buydown can save you far more each month than a price cut. Here’s the math:

Yes, rates are high. Freddie Mac’s 30-year average is 7.275%, the highest since November 2023, and daily averages went past 7.675% this week. But waiting for rates to drop means missing something important: buyers have leverage right now.

Redfin calls this the strongest buyer’s market since 2013, and sellers offered concessions in about 44.7% of August sales. In Denver, September sales were down 21.4% from a year ago. Austin has 5.7 months of supply. Sellers want offers, and that gives you room to ask for more.

Price cut or rate buydown? Run the math. Here’s an example (illustrative only, not a rate quote): a $400,000 home with 10% down and a 30-year rate of 7.5%. Principal and interest come to about $2,517 a month.

Ask for a $12,000 price cut, and your payment drops to about $2,442. That saves roughly $76 a month.

Ask for that $12,000 as a seller credit instead. A 2-1 temporary buydown costs about $8,600 and lowers your payment to about $2,044 in year one (saving around $473 a month) and about $2,275 in year two (saving around $242 a month). The remaining credit can help with closing costs.

The better choice depends on your plans, your budget, and how long you’ll keep the loan. And if rates come down later, refinancing may be an option.

The bottom line: don’t let the rate headline drive your decision. Let your monthly payment guide you, and negotiate for it. Want to see your own side-by-side numbers before you write an offer? Visit efficientlending.net
 to get started with Efficient Lending.

We work with buyers in Texas, Colorado, and Florida.

Example is for illustration only. Actual rates, buydown costs, and terms vary and are subject to credit approval and program guidelines.

Mike Nelson, Efficient Lending, Inc                                720.419.3016 | mike@efficientlending.net | @mike_lending
                                NMLS: 1876539 | NMLS: 1314188

Licensed in Colorado, Texas, Florida

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