How Interest Rates Impact Buying (and How Concessions Can Help You Save!)

If you’ve been paying attention to the housing market lately, you’ve probably noticed one thing that keeps making headlines: interest rates. They play a huge role in how much home you can afford and what your monthly payment looks like. But here’s the good news, there are strategies you can use to help offset higher rates, and asking for concessions is one of the best tools available right now.

Why Interest Rates Matter

When you’re buying a home, your interest rate directly impacts your monthly mortgage payment. Even a small change, like a 1% difference in the rate, can mean hundreds of dollars more (or less) each month. Over the life of a loan, that adds up to tens of thousands of dollars.

For example:

• At a lower rate, you might be able to afford a $400,000 home comfortably.
  
• At a higher rate, that same monthly payment might only qualify you for a $350,000 home.
  

That’s why so many buyers feel like their buying power shrinks when rates go up.

How Concessions Can Help

This is where concessions come in. Seller concessions are credits or incentives the seller offers to help with your closing costs or even to buy down your interest rate.

Some common concessions include:

• Covering part (or all) of your closing costs
  
• Offering a credit toward a rate buydown
  
• Providing money for repairs or upgrades
  

These concessions can make a big difference. Instead of coming up with extra cash at the closing table or living with a higher monthly payment, you get financial help that reduces your out-of-pocket expenses.

A Smart Move in Today’s Market

If you’re worried about interest rates, don’t count yourself out of the housing market. While you can’t control where rates are today, you can negotiate to make your purchase more affordable. Many builders and sellers are more open to offering concessions to keep deals moving.

That means now might actually be the perfect time to buy…before demand heats back up and sellers stop offering these perks.

Bottom Line

Interest rates may impact how much home you can afford, but they don’t have to keep you from buying your dream home. By negotiating for concessions, you can lower your upfront costs and even reduce your monthly payments.

👉 Ready to explore homes and see what kind of concessions are available in North Texas? Let’s connect! I’d love to help you find the right fit for your budget and goals!