Buying a house when interest rates are high: How some realtors do it
America's housing market is slowing down. Monthly payments are climbing out of reach for many prospective homebuyers and some sellers are hesitant to pull up stakes, unwilling to face a real estate environment where you get less house for your money, with mortgage rates approaching 7%. But the wheels of commerce must keep turning, and some realtors are finding creative ways to close deals. Everything is on the table: from pitching adjustable rate mortgages to offering free pilates lessons and more. On the financing front, a so-called buydown incentive is now surging in popularity, experts say. Under this type of arrangement, a seller "buys down" the interest rate a home purchaser will have to pay in the initial years of their mortgage. For example, in a 2-1 buydown scenario, the buyer's interest rate will be 2% below the contract rate during the first year. In the second year, it changes to 1% below. After those first two years, the mortgage payment returns to th...