With interest rates remaining elevated and market volatility becoming the norm, securing a favorable mortgage rate in 2025 takes more than timing—it takes strategy.
On a recent episode of The Jon Sanchez Show, Jon was joined by mortgage expert Dwight Millard (Synergy One Lending) and real estate professional Aaron Clark (Edge Realty) to discuss how homebuyers can navigate today's market.
Here are three ways buyers are lowering their mortgage costs:
1. Temporary Rate Buydowns
These buydowns—often negotiated with sellers—reduce your interest rate for the first 1-3 years. Common formats include the 2-1 or 3-2-1 buydown, where your rate incrementally rises each year until it reaches the original loan rate. It's a smart option when affordability is tight upfront, especially if you anticipate refinancing within a few years.
2. Buying Discount Points
This more permanent solution involves paying upfront to lower your interest rate for the life of the loan. It’s worth considering if you plan to stay in your home long-term, but less so if you might refinance in the near future.
3. Assumable Mortgages
Assuming a seller’s existing low-rate mortgage can be appealing—but it’s rare, and requires buyers to make up the difference between the mortgage balance and home price in cash.
Why It Matters:
Jon and the team emphasized the bigger picture—consumer confidence, inflation pressures, and policy uncertainty are shaping the rate environment. While no one can perfectly time the market, smart buyers are taking advantage of the tools available now.
As always, we encourage buyers to focus on long-term affordability rather than chasing the lowest possible rate. And remember, refinancing remains an option if rates improve.
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