How Can You Buy a Home In Chicago’s High-Rate Market?

By Ressie Krabacher

As a local resident and top performing REALTOR® in Chicago, Ressie Krabacher is relentlessly focused on helping her clients move forward. She serves as an advocate and advisor for buying or selling, overseeing relocation, or adding home ownership to their financial goals.

If you’ve been following Chicago real estate lately, you already know the market is still moving fast. Inventory is tight, especially for single-family homes on the North Side, and homes are drawing plenty of buyer attention.

I sat down with Kyle Perks from Stonehaven Mortgage to talk about a new product his team is rolling out that could help homebuyers purchase a home with a lower rate.

The 1% buy-down explained. Stonehaven Mortgage is now offering an exclusive 1% lender-paid interest rate buy-down. For the first year of your 30-year fixed mortgage, they’ll cover the cost to lower your rate, meaning instead of paying in the sixes, you could start out in the fives.

The idea is simple: lenders expect rates to drop in the next 6 to 18 months. This program gives you immediate relief on monthly payments while you wait for the chance to refinance into a permanent, lower rate.

How does this program work? The lender-paid 1% interest rate buy-down is a program that lasts for one year. You will still need to meet standard loan requirements to qualify, and once you are pre-qualified, the offer is valid for approximately 120 days.

The best part is that this buy-down is fully paid for by the lender, so you don’t have to worry about the additional cost. The program is designed to lower your initial payments for the first year, providing financial relief until interest rates hopefully drop, allowing you to refinance into a new loan with a lower rate.

Why does it matter now? Mortgage rates are tied loosely to the Federal Reserve’s moves, and with ongoing talks of rate cuts, buyers are caught between wanting to wait and needing a home now. For Chicago buyers facing stiff competition, waiting might not be an option.

This buy-down offers a middle ground: you get in at today’s prices, start with a lighter payment, and then refinance when rates fall.

If you’ve been hesitant to buy because of rates, this could be the chance you’ve been waiting for. The program isn’t mandatory, but it’s already helping Chicago buyers move forward with more confidence.

If you have questions about how the 1% buy-down works or want to see if you qualify, reach out to Kyle at Stonehaven Mortgage at (614) 582-0415 or kyle.perks@stonehavenmtg.com.

And as always, if you’re thinking about buying or selling in Chicago, contact me at (773) 965-4100 or ressie@kw.com. As always, I’m here to serve.