With the 30-year rate at 7.40% in Freddie Mac’s October 15, 2026 survey, the same house costs a lot more a month than it did a year ago. Three tools change that payment without waiting for rates to fall. Here is what each one does to one $450,000 purchase.
Freddie Mac’s Primary Mortgage Market Survey put the 30-year fixed average at 7.40% for the week of October 15, 2026, unchanged from the week before, and the 15-year at 6.71%. A year earlier the 30-year averaged 6.27%. On a $400,000 loan that gap is $2,769.52 a month against $2,468.07: $301.44 more for the same house, before taxes and insurance. Those survey rates are for conforming loans; a loan above your county’s 2026 limit ($832,750 for one unit in most counties, up to $1,249,125 in high-cost areas) is a jumbo, and the conforming loan limit calculator looks up your county.
Waiting for rates to drop is one answer. The other is to change the structure of the loan. The example below holds everything else fixed: a $450,000 home, $50,000 down, $400,000 to finance, principal and interest only.
| Approach | Loan setup | First-year payment | Long-run payment | Note |
|---|---|---|---|---|
| New 30-year loan at 7.40%, no help | $400,000 at 7.40% | $2,769.52 | $2,769.52 | Baseline |
| Seller pays a 2-1 temporary buydown | Same loan; $9,491 in escrow | $2,246.12 | $2,769.52 from year 3 | Year 2: $2,502.02 |
| Same seller money as discount points | 2.37 points: 6.81% for 30 years | $2,609.52 | $2,609.52 | Beats the buydown after 60 months |
| Assume the seller’s VA loan | $280,000 at 3.25% (25 yrs left) + $120,000 second at 8.5% (20 yrs) | $2,405.87 | $2,405.87 | $1,700 VA funding and processing fees |
| Buy now, recast after selling your old home | $100,000 paid in month 6, re-amortized over 354 months | $2,769.52 | $2,073.93 from month 7 | Rate stays 7.40% |
A 2-1 buydown lowers the rate 2 points in year 1 and 1 point in year 2. Someone, usually the seller or builder, deposits the missing payments up front: $9,491 here. You still qualify at 7.40%, and from year 3 you pay the full $2,769.52. Run your own numbers in the mortgage buydown calculator, which also shows how the same money would do as permanent points. With a lender that cuts the rate 0.25% per point, the points pull ahead after five years; if you expect to refinance or move sooner, the buydown wins.
FHA, VA and USDA loans can be assumed with the servicer’s approval, keeping the seller’s rate and remaining term. The catch is the seller’s equity: here $120,000 has to come from a second loan at a much higher rate. Even so, the blended payment is $2,405.87, $363.65 below a new loan. The assumable mortgage calculator shows how fast that advantage shrinks as the gap grows or new-loan rates fall.
Buyers who still own a home often cannot wait to sell before buying. Taking the full $400,000 loan and recasting after the old home sells turns a $100,000 principal payment into a lower required payment, $2,073.93 instead of $2,769.52, at the same rate and for a fee of a few hundred dollars. Recasts are a servicer option on conventional loans; FHA, VA and USDA loans are generally excluded. The mortgage recast calculator compares recasting with simply prepaying.
HUD treats housing costs above 30% of gross income as a cost burden. Add an assumed $500 a month for property tax and insurance to the $2,769.52 payment, and staying at 30% takes about $130,781 of household income. A household earning $72,000 can carry about $1,800 a month of rent and utilities on the same rule. If the gap between those numbers is large, renting while you save a bigger down payment, and watching for a seller willing to fund a buydown, is a reasonable plan rather than a defeat.
| Option | Key rule | Where it comes from |
|---|---|---|
| Temporary buydown | Up to 3 points below the note rate, rising at most 1 point a year, no more than 3 years; qualify at the note rate; not for investment properties or cash-out refinances | Fannie Mae Selling Guide B2-1.4-04 |
| Seller-paid costs | Capped at 3% of the price above 90% loan-to-value, 6% from 75.01% to 90%, 9% at 75% or less, 2% on investment properties | Fannie Mae Selling Guide B3-4.1-02 (May 7, 2025) |
| VA assumption | Funding fee of 0.5% of the balance and a capped processing charge; anyone who qualifies can assume | 38 CFR 36.4508 |
| FHA assumption | Loans closed on or after Dec 15, 1989 require a creditworthy buyer | HUD Handbook 4155.1, ch. 7 |
| Recast | Fannie Mae buys loans recast after a principal curtailment since Nov 3, 2021; servicers set minimums and fees | Fannie Mae SEL-2021-10 |
Freddie Mac’s survey put the 30-year fixed average at 7.40% and the 15-year at 6.71% for the week of October 15, 2026, and at 7.32% and 6.68% on October 22, 2026. Your quote depends on credit, down payment and points.
A buydown lowers the first two years’ payments the most; a price cut lowers the loan, the down payment and property tax for good but moves the monthly payment less. If you will keep the home a long time, compare the price cut and permanent points too.
Ask the listing agent whether the seller has an FHA, VA or USDA loan, its rate and balance. Some listings mention it; the servicer must approve the assumption.
Generally no. Recasts are offered mainly on conventional loans, so a buyer who plans to recast should choose a conventional loan.
A buydown does not, because you qualify at the note rate. An assumption can, because the payment you qualify on is the lower blended payment.
Nobody can time rates. If the payment at today’s rate fits your budget and you plan to stay, buying and refinancing later is possible; if it does not fit, renting while you save keeps your options open.