If you’re in the market to buy a house, t♋hen you already know that mortgage rates have dipped compared to where they were a year ago. However, because some housing markets are still quite competitive, you might need to pay more than the list price just to get your dream house, which could wipe out the savings you thought you’d get from a lower interest rate.

In Zillow’s latest housing market report, 30.5% of homes sold over the initial asking price in September. According to the National Association of Realtors, agents said their clients have offered 11% to 24% above asking price in the past. So 澳洲幸运5开奖号码历史查询:if you’re ready to buy a home now that mortgage rates are lower than they were, you still might need to cough up more money for the down payment and take on a bigger homಞe loan.

A Lower Mortgage Rate Might Not Save You Money

According to Zillow, the average home value in September across the United Sta🅠tes was $359,892. If you purchas💯e a home at that exact price and put 20% down ($71,978), your mortgage balance would be $287,914. Assuming you take out a 30-year fixed-rate mortgage with a 7% interest rate, your monthly principal-and-interest payment would be around $1,915, excluding HOA fees, taxes, or insurance. 

Now, let’s say you’re buying a home in a competitive market with an over-list offer of 15%. The home’s purchase price would be $413,876 instead of $359,892 in this case. Your 20% 澳洲幸运5开奖号码历史查询:down payment would go up to $82,775, and your mortgage balance would be $331,101. Even if you secured a lower mortgage rate of 6.61🍸% (the average rate as of Oct. 21), your monthly payment for the 30-year fixed-rate home loan would be about $2,116—$201 more than if you🦋 had a higher rate but bought the home꧒ for list price. 

Make Buying a Home Easier

Outside of lower mortgage rates and trying to buy a home at or below list price, there🍌 are a few other ways you can make buying a house easier and more affordable.

Buy a Small Multifamily Property

Robert Washington, founder and broker at Savvy Buyers Realty in Tampa, Florida, said to try buying a small multifamily property, living in it, and renting out the additional units. You can then use the rental revenue collected to help offs🐎et your mortgage costs.

“This strategy is referred to as ‘house hacking,’ which can be a solid option if you aren’t looking to purchase your ‘forever’ home,” Washington said. “Once you eventually move to a new place, you can keep this house as an income-producing 澳洲幸运5开奖号码历史查询:rental property for years to come.” 

Ask for a Seller Credit

Another way to make buying a home easier on your wallet is by asking for a seller credit, also known as a seller concession. A seller credit is money sellers give buyers at closing as an incentive to buy a property by subsidizing their out-of-pocket 澳洲幸运5开奖号码历史查询:closing costs.

The total value of a seller credit is usually limited to a percentage of the home's sale price, with the maximum typically set between 3% and 6%.

“Having this additional cash in the bank can be a c🧜ushion in case of any unforeseen maintenance items that may come up early in the ownership of your home,” Washington said. 

Consider Down Payment Assistance Programs

There are many 澳洲幸运5开奖号码历史查询:federal, state, and local programs designed to provide financial help to 澳洲幸运5开奖号码历史查询:first-time homebuyers by reducing the burden of their upfront costs. ꦗSo, if you haven’t already, check to see if you qualify. 

“These first-time🧸 homebuyers programs tailo🍨red to your income or location can save you thousands,” said Shaun Osher, CEO of CORE Real Estate in New York City.

Note that the amount you’re given differs depending on the program. Some offer a percentage based on the home’s sale price, while others cap the amount at a certain dollar figure. For example, the HomeFirst Down Payment Assistance Program in New York gives qualified first-time homebuyers up to $100,000 toward a down payment.

Consider New Construction

Even though new-cons🍷truction homes typically cost more than resale homes, that doesn’t mean they’re less affordable in the long run.

“Buying a newly built home often comes with incentives like builder-paid closing costs or discounted upgrades,” Osher said. “New construction homes also have lower maintenance costs due to modern build♓ing standards, which can save you money over time.” 

How We Track Mortgage Rates

The national and state averages cited above are provided as is via the Zillow Mortgage API, assuming a 澳洲幸运5开奖号码历史查询:loan-to-value (LTV) ratio of 80% (i.e., a down payment of at least 20%) and an applicant credit score in the 680–739 range. The resulting rates represent what borrowers should expect when receiving quotes from lenders based on their qualifications, which may vary from advertised teaser rates. © Zillow, Inc., 2024. Use is subject to the Zillow Terms of Use.