Rates are up. Your options aren't gone.
Mortgage rates follow the bond market, and right now there's no clear sign of quick relief. Waiting for rates to fall is a gamble. Planning for today's market isn't. Here's every tool I use to bring a payment down, in plain English, so you can see which one fits you.
Don't get stuck waiting on rates
Waiting has a cost
When rates do drop, buyers who've been sitting out come back fast. That means more competition, fewer seller concessions and higher prices.
Buy now, refinance later
Lock in today's price and negotiate good terms while sellers are flexible. If rates come down later, a refinance can capture the savings.
Shop the payment, not just the price
A seller-paid buydown can lower your monthly payment far more than a price cut of the same dollar amount. Ask before you write the offer.
New from Prosperity: two ways to fight back
Both programs launched this month and run through the end of the year.
Rate Relief+
A 1-0 temporary buydown paid by the lender. Your rate starts 1% lower for the first 12 months, then moves to your full note rate for the rest of the loan. No seller money required.4,5
Plus Refine Your Rate. If rates drop, refinance with Prosperity within 2 years of closing and get a lender credit of up to $1,695 toward the origination fee. Eligible starting 180 days after you close.4
- Eligible fixed-rate purchase loans: conventional, jumbo, FHA and VA
- Lock by 12/31/2026, close by 2/28/2027
Rate Knockout
Found a lower rate somewhere else? We'll match or beat any fixed-rate conventional, FHA or VA home purchase quote, or send you a $500 e-gift card.1,3
Get a second opinion. Already have a Loan Estimate from another lender? Bring it to me. I'll review it and work to meet or beat it.2
- Primary home purchases only
- Apply with Prosperity by 12/31/2026
- Quotes must have substantially similar terms
Buydowns, explained
A buydown is money paid up front to lower your interest rate. The difference is who pays it and how long the lower rate lasts.
2-1 Buydown
Your rate is 2% lower in year one and 1% lower in year two. From year three on, you pay your full note rate. It gives you breathing room while you settle in, furnish the house or wait for a raise to kick in.
- Usually paid by the seller or builder as a concession, so ask for it in your offer
- You still qualify at the full note rate
- Seller concession limits depend on your loan type and down payment
Permanent Buydown
Pay discount points at closing for a lower rate for the life of the loan. One point costs 1% of the loan amount. How much each point lowers the rate changes with the market.
- You, the seller or a mix of both can pay the points
- Makes the most sense if you'll keep the loan past the break-even point
- I'll show you the break-even month before you decide
Lender-paid buydown? That's Rate Relief+ above. Prosperity covers the cost, so you don't have to negotiate it with the seller.
Side by side
| Tool | Who usually pays | How long it lasts | Best for |
|---|---|---|---|
| Rate Relief+ | Prosperity | First 12 months, plus a refinance credit for 2 years | Buyers who want a lower start without asking the seller |
| 2-1 Buydown | Seller or builder | First 24 months | Buyers with a motivated seller who want early payment relief |
| Permanent Buydown | Buyer, seller or both | Life of the loan | Buyers planning to keep the loan for the long haul |
| Rate Knockout | N/A | Applies to your quote | Buyers who already have another lender's offer |
| Special programs | Varies by program | Varies by program | Buyers short on down payment or buying in an eligible area |
- Staying put for years?Look hard at a permanent buydown.
- Seller willing to help?A 2-1 buydown often beats a price cut.
- No seller help?Rate Relief+ gives you a lower first year anyway.
- Short on cash to close?Check the special programs below.
Special program financing
Down payment help and neighborhood programs can cut what you bring to closing, and some come with better pricing. A few I use most in Kansas City:
Income, price, credit and area limits apply. See full program details on Jason's PHM Site.
Let's build your rate plan
Every buyer's best move is different. Tell me a little about where you are and I'll run the options side by side for you. No credit check to get started.
Rather talk? Call or text (913) 687-7247 or email jason.robinson@phmloans.com.
Agents: send me the listing or your buyer's scenario and I'll put the options in front of them.
Got it, thanks!
I'll look over your info and reach out soon to walk through your options. Want to get a head start? Take the 2-minute down payment quiz.