Christie Mitsumura Blue Seas Team » savings

Mortgage Rate Buydown Strategy: How $10K Could Save You $164/Month

jsavusa2018@gmail.com — Thu, 12 Jun 2025 00:09:05 +0000

You’ve found the home you love. The list price? $400,000. You’re ready to make an offer, and naturally, you’re wondering if you should come in a little under asking — maybe $390K — to save some cash.

It feels like the smart move, right?

But what if I told you there’s a strategy that could save you way more than just $10K off the purchase price — not just once, but every single month?

Yep. Let’s talk about the $10K trick most buyers don’t even know exists.

The Smarter Play: Offer Full Price, Ask for a Concession

Instead of offering $390K on that $400K home, what if you offered full price — but negotiated a $10,000 seller concession?

Here’s what that could look like:

You offer the full $400,000…
But ask the seller to give you back $10,000 to cover mortgage points.

What are mortgage points?

Mortgage points (aka discount points) are upfront fees you pay at closing to reduce your interest rate. One point typically costs 1% of your loan amount and knocks off about 0.25% from your rate.

So let’s break it down with real numbers.

Real Life Example: Why This Trick Works

Let’s say you’re putting 5% down on a $400,000 home.

That gives you a loan amount of $380,000.

Now imagine this:

You spend $10,000 on points (about 2.5 points)
Your interest rate drops from 7% ➝ 6.38%
Your monthly mortgage payment goes from $2,661 ➝ $2,497

That’s $164/month saved — every month — for as long as you have the loan.

Over just 5 years, that adds up to $9,840. Over 10 years? Nearly $20,000.

So instead of saving $10K upfront by offering a lower price, you’re creating thousands more in long-term savings — simply by shifting how the money is used.

But Why Would a Seller Agree?

Here’s the thing: a seller is usually more focused on the sales price than the net proceeds — especially if they want to keep the comps strong in the neighborhood.

An offer at $400K with a $10K concession can be more appealing to a seller than an offer at $390K — because it still shows as a $400K sale on paper.

And for you? That $10K turns into serious savings over time.

Win-win.

When This Trick Works Best

This strategy isn’t one-size-fits-all, but it’s golden in a few key scenarios:

✅ You’re buying in a balanced or buyer-friendly market
✅ The home’s been sitting for a few weeks and the seller is motivated
✅ You want a lower monthly payment without waiting for rates to drop
✅ You’ve got a little wiggle room in your loan approval for concessions

It’s also perfect if you’re planning to stay in the home for several years and want to maximize long-term savings.

How to Run the Numbers (The Easy Way)

You can Google a “mortgage points calculator” and plug in your scenario to see what the potential savings look like.

Or… you can reach out to your mortgage pro ( that’s me!) and we’ll do it together.

I’ll help you compare both scenarios side by side — and show you if this strategy makes sense for your specific situation.

Final Thought

Home buying is all about the strategy. And sometimes the best financial move isn’t the most obvious one.

So before you try to save a few thousand off the purchase price, ask yourself:

Could I make my money work harder by using it to buy down my rate instead?

Because while $10K might sound like a small shift… that $164/month in savings could be the difference between stress and stability.

The post Mortgage Rate Buydown Strategy: How $10K Could Save You $164/Month appeared first on Christie Mitsumura Blue Seas Team.

The Off-Season Homebuying Hack That Saved Me $15,000

jsavusa2018@gmail.com — Mon, 14 Oct 2024 19:46:48 +0000

The real estate market can feel like a whirlwind, especially if you’re trying to time your home purchase just right. You’ve likely heard that spring is the best time to buy a home—right? While it’s true that many people list their homes during the warmer months, waiting for spring may actually cost you thousands more.
Let me share with you a little-known strategy that could save you a significant amount of money. In fact, I used this hack myself and managed to save $15,000 on my home purchase.

Don’t Fall Into This Trap!
The common mistake most homebuyers make is waiting until spring or summer to start their house hunt. The logic is that more homes will be on the market, which is true. But here’s the downside: everyone else has the same idea. By waiting until the traditional “peak” season, you’re setting yourself up for more competition, higher prices, and potentially losing out on your dream home because multiple offers are driving up the cost.
That’s the trap you don’t want to fall into. If you hold off until spring, you’re more likely to spend more than you need to, simply because the demand during this time is so much higher.

The Smart Move: Start Your Home Search in the Off-Season
Here’s the off-season hack that saved me $15,000: I started my home search in the fall. To be specific, the best time to begin looking for a home is between fall and early February.
Why? Here’s the kicker—while there may be fewer homes listed for sale during these months, there’s also less competition. And with fewer buyers to compete with, sellers are more motivated to negotiate, offering better deals on their homes. In fact, sellers who list their homes during the fall or winter often need to sell quickly due to job relocations, family changes, or the pressure of getting into a new home before the holiday season. This urgency works to your advantage as a buyer.
You might be thinking, “But if there are fewer homes available, won’t that limit my options?” While it’s true that the selection might not be as wide, the homes that are listed are often priced more reasonably, and you’ll have more leverage to negotiate. Plus, with fewer bidding wars, you won’t have to go over the asking price just to compete with other buyers.

The Proof Is in the Numbers
Let’s take a look at the facts. This year alone, home prices jumped by $15,000 from January to June. That’s a huge increase in just six months! And this isn’t just a one-time occurrence. Historically, we see this same pattern year after year: prices rise during the spring and summer months as competition heats up, while they tend to stabilize or even decrease during the cooler months.
For example, if you had purchased a home in January instead of waiting until June, you could have saved an average of $15,000 simply because there were fewer buyers in the market. The trend is clear—waiting for spring could cost you.

What About Interest Rates?
If you’re concerned about mortgage interest rates, you’re not alone. However, current trends show that interest rates are actually stabilizing and even trending downward. If this continues, we could see an even bigger surge in home prices between winter and spring as more buyers flood the market to take advantage of lower rates.
The combination of falling interest rates and rising home prices creates a perfect storm of competition in the spring, leading to higher overall costs for buyers.

Take Action Now
If you’re serious about buying a home, the smartest thing you can do is start your search now. By getting into the market during the off-season, you’ll not only face less competition, but you’ll also be able to negotiate a better price with more motivated sellers. And with interest rates trending down, you could lock in a great deal before the inevitable price surge in the spring.
Don’t wait until everyone else is trying to buy a home—be proactive and start your search between fall and early February. It worked for me, and it could work for you too.

Final Thoughts
Buying a home is one of the biggest financial decisions you’ll ever make, and timing is everything. By avoiding the crowded spring market and starting your home search in the off-season, you could save yourself thousands of dollars—just like I did.
So, why wait? Now is the perfect time to find your new home and save money in the process. Happy house hunting!

The post The Off-Season Homebuying Hack That Saved Me $15,000 appeared first on Christie Mitsumura Blue Seas Team.