Agent strategy webinar / October 15, 2026
High Rates Aren’t Just a Buyer Problem!
You do not have to love today’s interest rates to make a smart real estate decision. You need to understand the numbers and have the right strategy.
Lara Locke Team · CrossCountry Mortgage
The market
The Increase in Rates
Conventional 30-Year Fixed
Conventional 30-Year Fixed
A 0.44 percentage-point increase.
National index rates provide market context. They are not a quote for a buyer with 5% down.
$600,000 home / 5% down / 30 years
Same home. Higher payment.
Monthly principal and interest
Monthly principal and interest
$169.17 more each month
$30,000 down. $570,000 loan. $2,030.07 more P&I per year.
Principal and interest only. Taxes, homeowners insurance, mortgage insurance and HOA are additional when applicable. Illustrative rates, not a loan quote. Actual rates, APR, points and eligibility require an individualized quote.
Buyer purchasing power
What happened to their buying power?
Purchase price at a $3,750.21 P&I budget
Approximate price at the same P&I budget
About $25,898 less purchasing power
Holds 5% down, 30-year term and the P&I budget constant. A payment-only illustration, not a new underwriting approval. Full housing expenses are excluded.
Why this matters to your listings
Your seller’s next offer depends on a buyer’s payment
When buyers lose purchasing power, it affects who can afford your listing.
Before recommending another price reduction, let’s compare whether a financing concession could help solve the payment.
Seller strategy
How can the seller’s dollars create the biggest impact?
Price reduction
A lower price may reduce the loan amount and cash needed.
Financing concession
An eligible credit may help with closing costs or a rate buydown.
Compare the buyer’s full payment and the seller’s net.
Neither option always wins. Loan-program limits, appraisal, actual costs and contract terms affect the result.
A tool for your next listing
CCM Lock2Sell
Explore a seller-funded rate buydown before a buyer signs an offer.
On an eligible property and loan
Refunded after a qualifying CCM-financed closing
Give the listing a financing strategy buyers can evaluate.
Why builders can offer lower rates
Builders use forward commitments with lenders to fund lower rates across a group of homes. They may also offer lender or closing-cost credits. Total builder incentives can exceed 10% of the home price.
For example, Lennar reported about 12.9% in total incentives in Q2 2026. That figure includes the broader incentive package, not only the rate buydown.
Property and borrower must qualify. Seller contribution limits apply. Current public terms do not allow an extension of the original lock.
The complete purchase
What does it cost to own this home?
The home and negotiated terms
The full monthly housing expense
Down payment, closing costs and reserves
The strategy has to fit the buyer’s actual life.
The game plan
Five places to look for a solution
- Seller concessions
- Temporary buydowns
- Permanent buydowns
- Offer structure
- Rethinking the product
Two different jobs for the money
Temporary vs. permanent buydowns
Temporary
A funded subsidy lowers the buyer’s payment for a set period. The note rate stays the same.
Permanent
Upfront discount points buy a lower note rate for the life of that loan.
Early payment relief or a lower payment long term?
Temporary buydown choices
The payment relief menu
Longer options
- 3-2-1
- Three years of stepped payment relief.
- 2-1
- Two years of stepped payment relief.
- 1-1
- The same reduction for two years.
- 1-0
- One year of payment relief.
Shorter options
- 0.50-point reduction
- For the first twelve months.
- 0.50-point reduction
- For the first six months.
- 1-point reduction
- For the first six months.
Match the help to the buyer’s need and the available funds.
Payment reductions are measured in percentage points below the note rate. The note rate stays unchanged. The full payment begins when the subsidy ends. Available structures, funding and qualifying rules vary by loan program and investor.
STRATEGY #1
A 2-1 temporary buydown
Payment uses 2 percentage points below the note rate
Payment uses 1 percentage point below
The regular note-rate payment
The subsidy pays the difference. For this conventional example, the buyer qualifies at the full note rate.
STRATEGY #1 / The numbers
The $600,000 example
Monthly P&I paid by buyer
Monthly P&I paid by buyer
Regular monthly P&I
$13,483.21 total subsidy
$600,000 purchase, 5% down, $570,000 loan, 30-year term, 7.33% note-rate illustration. Principal and interest only. Taxes, homeowners insurance, mortgage insurance and HOA are additional when applicable. Illustrative rates, not a loan quote. Actual rates, APR, points and eligibility require an individualized quote.
STRATEGY #2
Six-month payment relief
Some buyers want breathing room after closing.
Move-in costs
Furniture, improvements and getting settled.
A defined period
Six months of help, then the full note-rate payment.
Match the assistance to the buyer’s need.
STRATEGY #2 / The numbers
What six months saves
Regular monthly payment
Buyer’s temporarily reduced P&I
$192.01 a month. $1,152.06 over six months.
$600,000 purchase, 5% down, $570,000 loan, 30 years. 0.50 percentage-point payment reduction. Full P&I resumes in month 7. Principal and interest only. Taxes, homeowners insurance, mortgage insurance and HOA are additional when applicable. Illustrative rates, not a loan quote. Actual rates, APR, points and eligibility require an individualized quote.
STRATEGY #3
A permanent rate buydown
A lower rate has an upfront price.
Cost and savings
What does the lower rate cost, and how much does it save each month?
Break-even
How long before the savings recover the additional cost?
I want to know what we paid to get there.
STRATEGY #3 / The numbers
Payment difference first
Monthly P&I
Monthly P&I
$570,000 loan, 30 years. Lara-supplied 6.99% rate and 1.5% discount cost. Assumes $8,550 is incremental to baseline costs. Principal and interest only. Taxes, homeowners insurance, mortgage insurance and HOA are additional when applicable. Illustrative rates, not a loan quote. Actual rates, APR, points and eligibility require an individualized quote.
Same seller budget / Different payment paths
One credit. Two payment strategies.
$18,000 seller-credit budget on the same $600,000 purchase.
2-1 temporary buydown
$13,483.21 subsidy. $3,175.86 P&I in year 1, $3,539.30 in year 2, then $3,919.38. $4,516.79 of the credit remains for eligible costs.
Permanent buydown
$8,550 assumed rate cost. $3,788.40 monthly P&I at 6.99% for the life of this loan. $9,450 of the credit remains for eligible costs.
A common budget makes the trade-off easier to see.
$570,000 loan, 30 years. Seller credit limited to permitted actual costs. Permanent pricing is illustrative. Principal and interest only. Taxes, homeowners insurance, mortgage insurance and HOA are additional when applicable. Illustrative rates, not a loan quote. Actual rates, APR, points and eligibility require an individualized quote.
STRATEGY #4
Rethink the down payment
A larger down payment reduces the loan. It also uses cash.
More down
Compare the payment benefit, mortgage insurance and pricing.
Other uses
Compare discount points and money left for life after closing.
We run the numbers before deciding where the cash goes.
STRATEGY #4 / Buyer cash
What if we put 19% down?
On a $600,000 purchase
On the same purchase
To test toward a lower rate or keep in reserves
I compare both versions before the buyer decides.
The smaller down payment increases the loan by $6,000. Compare actual pricing, MI structure, total payment and cash to close.
STRATEGY #5
Rethinking the product
Product spotlight
The standard 30-year fixed is a starting point. The buyer’s goals determine which alternatives deserve a comparison.
PRODUCT SPOTLIGHT 01
Bye Bye PMI
A 15%-down option with no monthly PMI, when the program and buyer qualify.
On a $600,000 home
$510,000 loan
Compare reserves, improvements or rate cost
We can test a permanent 1 percentage-point rate reduction.
Program illustration: 740 minimum FICO and 43% maximum DTI, subject to current eligibility. No-monthly-PMI structure and actual pricing require lender review. A 1% rate reduction has an unquoted cost.
PRODUCT SPOTLIGHT 02
ARM education
5/1 ARM
Rate fixed for five years, then adjusts annually.
7/6 ARM
Rate fixed for seven years, then adjusts every six months.
Caps limit how much the rate can change.
Payments can increase after the fixed period. Refinancing may not be available. The next example is an FHA 5/1 ARM, not a 7/6 ARM.
PRODUCT SPOTLIGHT 02 / The numbers
The $600,000 ARM comparison
With rate buydown; fixed for the first five years
No-cost rate option; fixed for the first five years
$654.54 less per month initially
3.5% down. $589,132.50 financed balance. 6% seller credit = $36,000.
Both options are FHA 5/1 ARMs, fixed initially for five years, then adjustable. No-cost refers to the 6.625% rate option’s buydown cost; other closing costs may apply. Both loans assume $579,000 base amount plus financed 1.75% upfront MIP. Annual MIP and other housing costs excluded. Rates supplied by Lara. Seller credit funds eligible costs only; points and allocation require a quote. Principal and interest only. Taxes, homeowners insurance, mortgage insurance and HOA are additional when applicable. Illustrative rates, not a loan quote. Actual rates, APR, points and eligibility require an individualized quote.
PRODUCT SPOTLIGHT 02 / Five-year cash flow
The first five years add up
Less cumulative principal and interest paid during the first 60 months.
A lower starting payment comes with adjustment risk later.
Based on the preceding 4.875% FHA 5/1 ARM / 6.625% no-cost FHA 5/1 ARM illustration. Unrounded $654.542333 monthly difference × 60. This is payment cash flow, not total interest, equity or total loan cost. No refinance assumed.
Another way to look at credit
FICO vs. VantageScore
I can look at more than one credit scoring model on eligible loans.
$4,079.61 monthly P&I
$3,936.85 monthly P&I
About $143 less per month in this example
Lara-supplied example: $600,000 purchase, 5% down, $570,000 loan, 30-year fixed. Higher score does not guarantee better pricing or approval. Compare points, APR, mortgage insurance and full costs. Principal and interest only. Taxes, homeowners insurance, mortgage insurance and HOA are additional when applicable. Illustrative rates, not a loan quote. Actual rates, APR, points and eligibility require an individualized quote.
Your next buyer conversation
What do we say when buyers fear the rate?
“Let’s have Lara compare the full payment, cash needed and available strategies before you decide.”
Bring me one buyer who paused over payment, or one listing where affordability is the objection.
A benefit of working with me
A little breathing room after closing
I’m offering my conventional buyers a six-month, 0.50 percentage-point temporary payment buydown at no cost to them.
For the first six payments
On the $570,000 loan example
Lara’s stated offer, subject to eligible loan and final terms. At a 7.33% note rate, buyer P&I is $3,727.37 for six months, then $3,919.38. Other housing expenses are additional. Buyer qualifies using the required full payment.
Let’s work through a scenario
Q&A
Which buyer or listing comes to mind?
What number is getting in the way?
Price. Down payment. Comfortable payment. Expected time in the home.
Next webinar
UAD 3.6
What agents need to know about appraisal changes.
2026
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Lara Locke Team · 951-405-2454
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