Can You Afford to Move with Higher Interest Rates? How the 2/1 Buydown Can Help

Hi, Debby here! With the real estate market shifting, I’m hearing a common question from both homeowners and buyers: “Can I afford to move with today’s higher interest rates?”

If you’re feeling stuck with your low Covid mortgage rate and hesitant to make a move, even though home prices are lower, let’s take a closer look at how a smart strategy like the 2/1 Buydown could make your next move more affordable.

What’s Happening in the Market?

The real estate market is shifting. Homes are staying on the market longer, prices are stabilizing, and sellers are more motivated to negotiate. At the same time, higher interest rates have many homeowners feeling stuck, unsure if they can afford to sell and buy again. This isn’t just a concern for sellers—buyers, too, may feel hesitant about affordability in today’s market. But here’s the good news: With the right strategy, such as the 2/1 Buydown, you can move forward without stretching your finances.

Why This Is a Great Time to Make Your Move

With homes sitting on the market longer and sellers eager to negotiate, this presents a unique opportunity for buyers and sellers alike. The 2/1 Buydown allows you to lower your monthly payments now, while positioning yourself for future equity growth.

Even if you’re a homeowner with a low 4% Covid-era mortgage rate, this strategy allows you to take advantage of today’s market without compromising affordability. And if you refinance earlier, you can apply any unused seller contributions and buy-down funds to your principal, accelerating your equity growth and potentially lowering your overall debt faster.

The Trifecta Advantage - Smart Home Buying

1️⃣ Lower home prices in today’s slower market position you for future equity.
2️⃣ Seller-paid buy-downs reduce your monthly payments and buy you time to refinance.
3️⃣ Refinance earlier: Apply unused buy-down funds to your principal, reducing your debt and boosting your equity.

The 2/1 Buydown in Action

✔️ Year 1: You lock in a lower rate (e.g., 4.875%) with savings of $913 per month.
✔️ Year 2: Your rate steps up (e.g., 5.875%), but you’re still saving $437 per month.
✔️ Refinance Earlier: If you refinance before Year 3, any unused buy-down funds can be applied to your principal, reducing your debt and positioning you for greater equity growth even sooner.

The figures provided are estimates and are for illustrative purposes only. Actual terms, rates, and monthly payments may vary. Be sure to check with your lender or financial advisor for accurate, personalized information based on your unique financial situation.

This trifecta approach—lower home prices, a seller-paid buy-down, and the ability to refinance early—can give you options and make your move easier than you think.

Not just for sellers! Even if you're a first-time buyer or planning to move-up, the 2/1 Buydown is a strategy you can use to your advantage.

🎥 Watch the video for a full breakdown, and let me know if you’d like to see how this could work for you. Let’s explore your options and turn this market into an opportunity!

Debby Eubank, Realtor, SRES
Nest & Invest Host / Real Estate Maven
Jason Mitchell Group
DRE# 01332306
📲 619-820-9999