Navigating High Interest Rates: Creative Financing Tips from a Palm Springs Realtor

Many homebuyers in Palm Springs and Palm Desert are feeling the pinch of rising interest rates. While rates above 7% may feel discouraging compared to the historic lows of recent years, there are creative ways to move forward without breaking your budget.

First, consider a rate buydown. This is when the seller or builder pays to reduce your interest rate for the first few years of your loan. It can significantly lower your monthly payment while giving you time to refinance if rates drop later.

Another option is an adjustable-rate mortgage (ARM). If you plan to own the property for less than 10 years – which is common for vacation homes and investment properties in the Coachella Valley – this can be a smart move. ARMs often start with lower rates, freeing up cash flow.

Builders in new developments throughout Palm Desert are also offering financing incentives like closing cost credits or lower fixed rates through their preferred lenders. These perks can be worth thousands.

As a Palm Springs realtor, I stay connected with top lenders and builder programs to help my clients make informed, strategic financial decisions. Don't let interest rates hold you back — there are options, and I’m here to help you explore them.