The past few years of rising interest rates have caused some prospective homebuyers to put their dreams on hold. But you can revive your plans. New Home Inc. can show you how to get more home for less by taking advantage of lower interest rates right now.

Don’t Pay the Cost of Waiting

First of all, think long term. Interest rates fluctuate, up and down. Home prices historically head in one direction: up. So, while you’re sitting and waiting and watching the movement of interest rates, that house you want is getting more expensive.

Eventually, when you decide that interest is at an acceptable rate for you, you might need to finance a higher loan, because of increased housing prices. Maybe while you’ve waited, you’ve managed to save enough extra money to pay the difference between what the home cost when you first considered buying it and what you need to pay now for something comparable.

Can you also qualify for the higher mortgage you’re going to need? Or will you have to scale back on your new home wish list items?

Next, factor in the equity you’re missing while you wait. If you purchase a home now, your equity begins to grow almost immediately. As the value of your own home increases, your investment delivers a return in the form of equity: the difference between the current market value of your home and what you owe on the loan.

These issues represent the cost of waiting. So, if you want to act sooner, what are your options?

Understand the Impact of Interest Rates On Your Purchasing Power

It’s important to understand how interest rates affect how much home you can afford. After all, the interest rate you can secure will impact not just monthly house payments, but also your overall purchasing power.

What is your purchasing power? The term refers to how much you can get for your money. Purchasing power is the amount of house you can afford based on your available budget: the size, location, features, and condition of the home. The amount you’ve saved for a down payment amount, current debt, and credit score all contribute to the extent of your purchasing power.

So, how does a fraction of a point impact your mortgage payment? Let’s say you’re buying a home priced at $400,000, and you’re putting down 20% ($80,000) as a down payment, which means you’re financing $320,000. With a 30-year fixed rate loan at 6.7%, your monthly mortgage (principal and interest, known as “P&I”) would be $2,065.

Knock that down a half-point to 6.2%, and your monthly mortgage becomes $1,960, almost $100 less per month—or $1,200 a year and $36,000 over the 30-year loan term.

You can plug in your own numbers on this mortgage calculator to see how different purchase prices, down payments, and rates impact your payment.

Marry the Mortgage, Date the Rate

There’s a saying in the industry, “Marry the mortgage, date the rate.” That means shopping around for rates and getting to know what you can get for a mortgage. When you find “the right one”, you marry the mortgage. It’s a long-term commitment. Even if you’re only planning to stay in this home for a few years, you’re accepting the responsibility of committing to the mortgage. 

If you want to learn how to get more home for less by taking advantage of lower interest rates, start by doing your research. There are so many home loan programs available to homebuyers that you should explore the possibilities. You can secure a home loan from a private lender—bank, credit union, online mortgage company—which are known as “conventional loans”. This type of mortgage requires a high credit score, often 720 or higher.

But don’t worry if you’re not in that category. Government-insured home loans have less strict qualifications, both for the credit score and down payment. And you can still get a low interest. These loans are backed by the government, intended to help more people become homeowners. The Federal Housing Administration (FHA), Department of Veterans Affairs (VA), and Department of Agriculture (USDA) each offer loans with low or no down payments. Some programs will help you with closing costs, too.

Not every lender finances government-insured home loans, so be sure to ask when you’re mortgage shopping.

Marry the Rate Buydown Solution

While you’re looking into your financing options, here’s one more to consider: a rate buydown.

The rate buydown allows the buyer or seller to purchase discount points. The points are used at closing to lower the interest rate, essentially offsetting the difference in the interest amount between the higher and lower rate. The cost to purchase a discount point is usually 1.0% of the loan amount for a 0.25% discount point. In the above example, where you’re financing $320,000, you would pay $3,200 to lower the rate by a quarter of a point.

Rate buydowns can be temporary or permanent. A 2-1 rate buydown lowers your rate for the first year of the loan, then increases slightly the second year. From the third year on, you pay the full interest rate agreed to at the time of closing. A 3-2-1 rate buydown is similar, but gives you an extra year before the rate reverts to the full amount for the remainder of the loan.

A permanent rate buydown holds your rate for the duration of the fixed rate loan, like 15 or 30 years. It’s a great solution, if you can afford it.

But here’s a better scenario. The builder pays to buy down your rate! New Home Inc. is currently offering a permanent rate buydown that secures your rate as low as 4.99% for the entire 30-year loan term. The program applies to government-insured loans (e.g., FHA, VA, USDA) and requires a minimum 660 credit score.

Going back to the $400,000 home, instead of paying $2,065 per month, your monthly mortgage drops to $1,716 at 4.99% with 20% down payment. Or if you can only manage a 3.5% down payment—which is acceptable with these government-insured loan programs—you pay $2,070 for the principal and interest of the loan. However, you’d also be required to pay a mortgage insurance premium (MIP) for the FHA loan because you’re paying less than 20% down. That’s an additional $315 per month. But at least you can see how to get more home for less by taking advantage of lower interest rates. (Note: If you can pay 10% down, your P&I payment is $1,911 and your MIP is $177 per month.) 

Pay Less for More Home

When you take advantage of a rate buydown, you can normally either lower your mortgage payment or buy “more home”. What does that mean? You get more for your money. You apply the savings toward a home that offers more of what you want and need. Maybe you can afford a home with more space, a bigger yard, a nicer kitchen, and a more appealing location. 

When you decide to buy one of New Home Inc.’s new homes for sale near Raleigh, NC, you can get both the lower rate AND more home.

We design and build our homes to deliver more lasting value to our homebuyers. As you’re house-hunting new construction homes, be careful about falling in love with a model home. They are often outfitted with more than the standard features, in hopes of getting you to decide to pay for the upgrades. Always ask for a list of standard features and compare it to what you’re seeing in the model.

New Home Inc. decided to include more features in our home because we believe they’re important for homeowners and their families. There are certain details, like safety and security, that shouldn’t be considered optional. And smarter design just makes sense in new homes.

Today’s Future-Proof Homes

Lifestyles have changed a lot over the past 5 years. Homes need to accommodate these shifts, because they impact how much our homes keep up with evolving lifestyles, now and for years ahead. New Home Inc. committed to designing and building Future-Proof homes that fit the way you want to live. Here are some examples of our higher level of standard features to meet your needs.

Working from home

The pandemic sparked a meteoric rise in remote working. It was often difficult to carve out a suitable workspace at home. The kitchen counter, dining room, living room, and a corner of the bedroom had to make do.

When office doors reopened, many employers and employees had experienced the benefits of the work-from-home model and decided to stick with it. New Home Inc.’s designers recognized the importance of a home office. We include a pocket office in our layouts. The room is adjacent to the kitchen, with a door, so you’re not enduring the traffic coming and going through the front entry.

This flex space can take on other functions if you don’t need the office. Convert it into a library, den, yoga studio, fitness area, homework station, hobby room, or No Kids Zone.

Accommodating more smart devices and users

Existing homes aren’t wired to handle the demand for multiple smart technology, with multiple users and devices putting a strain on the network. If you’ve ever been trying to work on your computer while someone else is gaming, another is watching TV, and still another is streaming videos on their phone, you know how sluggish the signal can be. More users and devices slow down the connection and data transfer speed.

We use CAT6 ethernet cabling in every home. This advanced cable allows for a more robust, consistent signal throughout your home, without the dreaded dead zones.

New Home Inc. also outfits every home with a smart home automation package: video doorbell, door lock, thermostat, and complete lighting package. You move in with an easily accessible wireless home network panel, which connects all of your devices, such as smart televisions and speakers, computers, mobile devices, gaming consoles, and printers. This feature simplifies the step of adding new technology to your home, controlling devices and passwords, and making sharing a seamless and secure activity.

Making kitchens more functional

The kitchen is the heart of the home. It’s the space where people congregate, whether they’re eating or not. The result can be bottlenecks, clutter, and limited space.

Our first step in rethinking the kitchen focused on the center island. We recognized that families need more space for dining, working, and catching up with each other. The elevated breakfast was a definite deterrent, more like a barrier than a useful space. We switched our design to oversized kitchen islands. By expanding the countertop here, we allowed for seating on 3 sides, not just 1 or 2. Plus, the larger area adds workspace, something no one ever complains about in a kitchen!

The next feature was designed to tackle the bottlenecks and clutter. We added a service pantry, which we call a “messy kitchen”. This nook is situated right next to the kitchen, separated by a door, so it’s convenient while keeping the pantry’s interior out of sight. You can design your messy kitchen with the features you want, like cabinets, a sink, dishwasher, mini fridge, or wine chiller. Keep small appliances and seasonal dishware in the cabinets. Use the space for staging meals when entertaining. Or set up a beverage and snack station, keeping that traffic out of the kitchen.

Protecting home deliveries

Since 2020, families have been getting more items delivered—groceries, meals, supplies, furniture, appliances, and more. Do you feel comfortable having those packages left outside your front door?

New Home Inc. came up with the smart door delivery center. This enclosed space between your exterior and interior front doors is protected by a smart lock on the exterior door. You give the code to the authorized delivery person. They use the code to unlock only the outside door, place the package within the delivery space, and leave. The door automatically relocks. Your deliveries are protected from the weather and passersby. The smart door delivery center is one of our most popular features.

Charging electric vehicles

Here’s another example of how New Home Inc. future-proofs our home. Maybe you don’t currently have an electric vehicle, but might get one in the foreseeable future. Before adding drywall to seal the garage walls, we do all the wiring for an electric charging station. When you’re ready to add a charging station, just connect the charger to the outlet.

Living healthier and more energy efficiently.

A home designed to conserve energy is not just an eco-friendly commitment to sustainability, but also a money-saver. Our homes are built according to the strict requirements to earn the ecoSelect home efficiency certification. The construction methods, materials, and appliances conform to their standards for conserving electricity and water.

We also address another major concern: indoor air quality. You have more pollutants inside your home than outdoors, where air can circulate more openly. Our whole home air filtration system creates a healthier indoor environment—another feature that shouldn’t be considered an upgrade, in our opinion.

Organizing the family

Whether you call it the mud room, family entry, or drop zone, every home has a space near the most commonly used entry where clutter piles up. All of our new homes for sale near Raleigh, NC, include a complete drop zone space when you step inside from the garage, with cubbies and hooks installed. Store the coats, hats, backpacks, leashes, and other things that need a place at home, but not necessarily in the main living area. We give you the benefit of having organizational space. It’s up to you to get your family to use it!

Affordable new homes for sale near Raleigh, NC

Interest rates might be causing you to reconsider buying a new home, but the rate buydown New Home Inc. is offering presents the solution, one that saves you the cost of waiting. We invite you to browse our communities of single-family homes and townhomes in Raleigh suburbs within a half-hour drive—Angier, Clayton, Fuquay-Varina, Lillington, Smithfield, and Willow Spring. Our quick move-in homes are included with the rate buydown offer. Get the low rate on a brand new home that’s either available immediately or very soon.

You’ll find a wide variety of locations, homes, floor plans, and homesites in our ever-expanding inventory of move-in ready new homes for sale near Raleigh, NC. Our exteriors showcase different architectural styles—Craftsman, Traditional, Farmhouse, French Country. English Country, Low Country—but contribute to eye-catching curb appeal, no matter which style you choose.

We have single-family homes in both ranch and multi-story designs, and townhomes for sale right now If you’re looking for a large yard, we have lots up to 2 acres in several communities.

Stop waiting to buy the new home you’ve been thinking about. With New Home Inc.’s rate buydown and feature-rich new construction homes, your dream is affordable! Contact us to change from a home-watcher to a homeowner.