🏡 Unlock Lower Rates: 3 Tricks Every Agent Should Know

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Good morning, agents.🌟 If rising interest rates have your buyers hitting the brakes, it's time to shift gears.

Armed with the right tools, you can turn rate objections into signed contracts.

Today, we’re diving into the top three mortgage hacks every real estate pro needs to know: Buy-Downs, Discount Points, and ARMs (Adjustable-Rate Mortgages).

Let’s break it down. 👇

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UNLOCK LOWER RATES: 3 TRICKS EVERY AGENT SHOULD KNOW

1. Buy-Downs: Lower Payments, Happy Buyers

💡 What’s the deal?

Buy-down mortgages offer buyers reduced rates for the first 2–3 years of their loan. For example:

• 2-1 Buy-Down: 2% lower in Year 1, 1% lower in Year 2, full rate in Year 3.

• 3-2-1 Buy-Down: 3% lower in Year 1, 2% in Year 2, 1% in Year 3.

🏠 Who pays for it? Buy-down fees can be covered by buyers, sellers, or even builders (pro tip: check builder incentives!).

📈 Why it works: Lower upfront payments ease buyers into homeownership while potentially qualifying them for more expensive properties.

2. Discount Points: Buy the Rate You Want

💡 What’s a discount point?

Prepaid interest that reduces your buyer’s mortgage rate—1 point equals 1% of the loan amount.

📊 The math: For a $250,000 loan:

• Paying $2,500 (1 point) might reduce the rate by 0.25%.

🛠️ When to recommend: If buyers plan to stay put for 7+ years, this long-term strategy locks in savings over time.

3. ARMs: Flexibility for the Right Buyer

💡 How they work: Adjustable-rate mortgages start with a fixed rate (usually 5, 7, or 10 years), then adjust annually based on market rates.

⚖️ The tradeoff: Buyers enjoy a lower fixed rate initially but need to be prepared for potential increases later.

📅 Pro tip: Perfect for buyers who plan to sell or refinance before the adjustment period kicks in.

BONUS KNOWLEDGE: WHY THIS MATTERS FOR SELLERS, TOO

🔥 Listing agents, take note: Educating sellers about these programs can make their properties more appealing.

Lower-rate options can help buyers stretch their budgets—without lowering the list price.

FINAL THOUGHT: KNOWLEDGE = CLOSED DEALS

Objections like “I’m waiting for rates to drop” are opportunities for education, not deal-breakers.

Equip yourself with these tools, partner with savvy lenders, and make sure your buyers know they have options.

🎯 Next Steps: Grab coffee with your local lenders and get the full scoop on these programs.

Then, take this knowledge into your next buyer consultation and turn hesitations into celebrations.

TAKE ACTION TODAY

Join our Premier Coaching for free, and get daily coaching sessions, expert scripts, and the strategies you need to tackle prospecting head-on. Sign up at https://premiercoaching.com.

And if you’re ready to take that next big step, consider joining the EXP Realty team. Visit https://whylibertas.com/harris or text Tim directly at 512-758-0206.

AND THAT'S A WRAP!

Here’s to lower rates and higher closings! 🚀

—Tim & Julie Harris
Harris Real Estate Daily

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