What Most Buyers Don’t Know About Interest Rates (and How to Use Them to Win)

Interest rates can feel like the biggest barrier to buying a home. But here’s the truth: buyers who understand how rates really work can use them to gain an edge in today’s market.

Here’s what most buyers don’t know, and how you can use this knowledge to make smarter moves.

Higher Rates Mean Less Competition

When rates rise, some buyers pause their plans. That means fewer people are bidding on homes and more motivated sellers are willing to negotiate. You may be able to buy the right home at a lower price and with better terms simply because you are in the game while others are sitting it out.

You Can Negotiate a Rate Buydown

Many sellers right now are offering to pay part of your interest rate for the first couple of years, or even permanently. This is called a rate buydown, and it can save you hundreds each month. It is often more valuable than asking for a price cut.

Refinancing Is a Real Strategy

Rates are not permanent. If you buy now and rates drop later, you can refinance into a lower monthly payment. The key is locking in the right house now, while prices are stable and you have more negotiating power.

You Still Build Equity Over Time

Even if your rate is higher, you are still building equity through ownership. That equity can later be used to refinance, upgrade, or invest in other opportunities. Rent gives you no return, but owning does.

It’s Not Just About the Rate

Smart buyers look at the full picture: purchase price, taxes, insurance, maintenance, and long-term value. An agent who understands financing can help you see the full cost of homeownership and make a decision that fits your goals.

At Founded Realty, we work closely with experienced lenders who can build a plan tailored to your budget, timeline, and goals. And our Buyer Confidence Commitment gives you peace of mind: if you are not fully satisfied with your purchase within the first 12 months, we will sell it for you for free.*

You also get a two-year home warranty with every purchase, protecting your investment beyond the sale.

Let’s talk about your next move. Schedule your free homebuyer consultation today.