Buying a home can be expensive, and your monthly mortgage payments can add up quickly. If you know how to lower a mortgage payment now, you can get a mortgage that helps you save big long into the future.
At TimberCraft Homes, we craft modern home communities in the Oklahoma City and Edmond area. Along with this, we have partnerships in place with some of the top mortgage lenders in OKC. These partnerships allow us to offer competitive home mortgage options. Plus, our lenders provide tips and recommendations to help you keep your monthly mortgage payments as low as possible.
The Average Long-Term U.S. Mortgage Rate Is on the Rise
On Oct. 5, 2023, the average mortgage rate for a 30-year home loan hit 7.49%, which represents its highest mark since December 2000. There’s also a housing shortage that is contributing to high mortgage rates and above-average home prices in the United States.
These factors and many others can make it difficult to buy a home in OKC and other cities and towns across the United States. But when you have the right home builder at your side, you can quickly purchase a home and start building equity.Â
Why Now Is a Good Time to Buy a HomeÂ
For those who feel confident about their credit and long-term plans, now is an ideal time to buy a home. There are several reasons why.Â
First, home prices are likely to rise when interest rates lower due to rising demand in homes. Since interest rates have recently gone up, there may be less competition for homes. Therefore, you may be able to quickly and easily find and purchase a home that best suits your style and needs.
After you buy a home, you can refinance your mortgage at a later date if rates go down. That can decrease your monthly mortgage payment further. This can help you further reduce your mortgage payment.Â
Ways to Lower a Mortgage Payment
When approaching how to lower a mortgage payment and keep it low moving forward, there are a number of approaches new homebuyers can take. These include:
1. Capitalize on Financing Incentives
Your home builder can put you in touch with the leading mortgage companies in OKC, so you can reduce your monthly payments. These companies can teach you about a wide range of financing incentives, such as:
Rate Buydown
With a rate buydown, your lender and home builder work together to lower your interest rate for the duration of your mortgage loan. They can discuss a rate buydown with you, explain its terms and conditions, and help you get the most value out of it.
At TimberCraft Homes, we can contribute a certain amount of money toward your buydown. This is usually through a one-time payment made on your behalf.
Based on our contribution, your lender agrees to reduce your mortgage interest rate, and this rate remains in effect for the life of your loan. This helps make homeownership more affordable than ever before.
Closing Cost Assistance
Some lenders will offer money that you can use to cover a portion of your closing costs.
For example, TimberCraft Homes has preferred lenders in place who can offer 1% of your loan amount paid towards your closing costs up to $3,000.Â
Preferred Lender Programs
A preferred lender program gives you access to loan products, services, and resources that you won’t necessarily find elsewhere.Â
​​2. Submit a Large Down Payment
Pay as much as you can upfront for your home. When you do, you won’t have to take out as much money through a home loan. This can lead to a lower monthly mortgage payment. Â
3. Extend the Terms of Your Mortgage
Rather than getting a 15-year mortgage, it can be beneficial to go with a 30-year option. By extending your mortgage, you spread out your loan payments over a longer period of time. This allows you to reduce your mortgage payments in the short term. Down the line, you may be able to refinance your mortgage and get a lower interest rate, too.
​​4. Track Your Finances
Monitor your income, debt, and credit score. By earning a steady income, you can budget for your ideal mortgage payment amount. If you track your debt, you can look for ways to avoid financial issues that can otherwise hamper your ability to get the best mortgage terms. And if you have an outstanding credit score, you may qualify for a lower interest rate on your home loan.
How to Save on Other Home ExpensesÂ
In addition to preferred lender programs, your home builder may offer both personalized homes and move-in-ready homes. By purchasing these homes, you can lower your monthly expenses compared to purchasing an older home.
For instance, you can select a move-in-ready home or personalize a new build that aligns with your personal style and budget. That way, you won’t have to do any expensive renovations upfront.
New construction homes, like those from TimberCraft, are equipped with energy-efficient appliances. This can help you minimize your home energy costs from the get-go.Â
Also, your new home won’t require any repairs or maintenance right away. As such, you can move into your home without having to worry about any costly and time-intensive improvements.Â
How to Get a Low Mortgage Payment for a First-Time Buyer
It can be daunting to go through the process of getting a mortgage. Thankfully, your home builder can explain how to get a low monthly mortgage payment if you’re purchasing a home for the first time.
If you have questions about how a mortgage works and what options are available, your home builder can help you out. The builder can connect you with lenders, and they can go over your financing options with you. They can even provide you with a personalized mortgage designed to help you buy a house without breaking your budget.Â
You can capitalize on a home builder’s preferred lender programs if you are a first-time homebuyer, too. These programs make it simple to secure financing for your home. They can also help you save money over the life of your mortgage.
TimberCraft Homes Can Help You Buy a Home and Get a Low Mortgage
If you have concerns or questions about home financing, you’re not alone. Fortunately, when you have a trusted home builder at your side, you’re in good hands.
Your home builder can help you choose between new homes and move-in-ready ones. No matter what home you select, this builder can provide you with financing options that help you keep your monthly mortgage payments to a minimum.
TimberCraft Homes offers financing options and preferred lender programs to anyone who wants to purchase a new or move-in-ready home.Â
Contact TimberCraft today to learn more about financing options for our new homes.