“I’m waiting for rates to drop.”
Should I wait for mortgage rates to drop before I buy?
You may not have to wait. The seller can pay at closing to lower your payment for the first few years. Then it steps up to the full payment, and the lender checks that you can afford it before you close. Most people aren’t waiting for a rate. They’re waiting for a payment. The full schedule and APR are below.
Quick answers
“We’re waiting for rates to drop.”
Ask for a lower start instead. The seller can pay for it.
Watching the Fed?
The Fed’s rate isn’t your mortgage rate. They’re connected, but they don’t move together.
Afraid to buy at the top?
Buy the home you want. If rates fall later, you may be able to refinance, subject to qualification.
The numbers
Year by year, at our latest posted rate.
Every payment, how long it lasts, the rate and the APR, side by side.
Every payment, at the same size. Example: a $750,000 home with 25% down ($187,500) and a $562,500 loan. 30-year fixed with a lower start.
- Year 1 $2,808 a month Principal and interest Rate 4.375% · APR 7.424%
- Year 2 $3,150 a month Principal and interest Rate 5.375% · APR 7.424%
- Year 3 $3,509 a month Principal and interest Rate 6.375% · APR 7.424%
- Years 4 to 30 $3,885 a month Principal and interest Rate 7.375% · APR 7.424%
Interest rate 7.375% fixed · APR 7.424% · 360 monthly payments at a fixed interest rate. The rate is lower in years 1 to 3, as each year shows, then the full rate from year 4.
Taxes and insurance are not included, so the actual payment will be higher.
The lower start costs about $26,300 at closing. The seller, a builder or you can pay it. You qualify at the full payment, so the step up is planned for from day one.
Example only, not a quote or an offer to lend. The interest rate and APR are Home First Financial's posted 30-year fixed rate as of Friday, October 9, 2026: 7.375% (7.424% APR), based on the purchase of a $750,000 single-family home or condo, primary residence, in California, with 25% down, a 780 credit score and 0 discount points. The APR includes estimated lender fees. Your rate, APR and payment depend on the loan amount, down payment, credit and property, and they can change without notice. Payments shown are principal and interest. Property taxes, insurance, HOA dues and mortgage insurance are not included, so the real payment will be higher. Not a commitment to lend. With this lower start, the rate is lower for the first 3 years, as the rate beside each year shows, and the lender checks that you can afford the full payment. The lower start costs about $26,300, paid at closing. If you pay for the lower start yourself, its cost counts as a finance charge and the APR is a little higher, about 7.465%. A seller or builder credit for it is limited to 9% of the price ($67,500) with 25% down. Not every loan allows it, and FHA, VA and jumbo rules differ.
Does it fit you?
3 quick questions. No signup. No credit pull.
What you'll need
- Pay stubs or other proof of income
- Two months of bank statements
- A home you like, or a price range
What happens if I call today?
What if I just wait a year?
Rates might be lower. They might not. Nobody knows, and we don’t predict rates. Your own plans can change while you wait, and so can prices and rents.
What you can know is today’s payment. Ask for it on a home you like, and ask what would lower it.
How can the seller lower my payment?
The seller pays money at closing to cover part of your interest for the first few years. Your payment starts lower, then steps up to the full payment. You qualify for the full payment up front, so the step up is planned for from day one.
Ask early. The credit goes in your offer, and loan rules limit how much a seller can pay.
Doesn’t the Fed decide my rate?
No. The Fed sets a short-term rate for banks. Mortgage rates follow longer-term markets. They’re connected, but they don’t move together.
So a Fed headline won’t tell you your payment. Today’s quote will.
What can I do while I decide?
A few small steps keep your options open.
- Get pre-approved, so you know what you can spend.
- Ask for today’s payment on a home you like.
- Ask about a lower start before you make an offer.
- Hold off on new credit cards and loans.
Questions people ask
Will rates drop soon?
Nobody knows. We don’t predict rates. We show you today’s numbers and your options.
Can I refinance later?
Maybe. A refinance needs approval and isn’t guaranteed, so buy a payment you can afford today.
Is now a bad time to buy?
Nobody can time the market. We can show you today’s payment and your options, so you decide with real numbers.
What’s the difference between the rate and the APR?
The rate sets your payment. The APR adds in some loan costs, so it shows the cost of the loan as one yearly number. It’s a good way to compare lenders.
Can the seller pay my closing costs instead?
Sometimes. A seller credit can go toward closing costs, a lower start or both. Loan rules set a limit, and your loan officer checks it for your loan.
Do I need a home picked out first?
No. You can get pre-approved now and ask about a lower start when you find the home. The credit gets written into the offer.
Does Home First Financial offer seller-paid buydowns in California?
Yes. With Home First Financial, the seller can pay at closing to lower your payment for the first few years, on homes across California. You qualify for the full payment up front. Subject to qualification.
Talk to a loan officer
Call or email a licensed loan officer.
The application takes about 15 minutes, on the secure site we use. Do what you can, and your loan officer calls to fill in the rest.
Prefer to meet in person? Our main office is in Tustin, by appointment.
The fine print
You qualify at the full note rate. Buydown funds are paid at closing and limited by loan rules. A refinance requires approval and is not guaranteed. Rates change daily. Examples are estimates, not quotes. Not a commitment to lend.
The APR shown is for the note rate.
Also called: a temporary rate buydown: 3-2-1, 2-1 or 1-0.
Home First Financial is not affiliated with HUD, FHA, VA, USDA, CalHFA or any government agency.
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