CBS News
5 strategies for dealing with today’s high mortgage rates
Getty Images
Over the last couple of years, mortgage rates have climbed from extreme lows to levels not seen in decades. In late 2021, the average rate on a 30-year fixed mortgage was hovering near 3%. But persistent inflation led the Federal Reserve to start raising its benchmark interest rate in 2022 and into 2023, forcing consumer interest rates to climb in tandem. And, while Fed rate hikes have been paused recently, at 7.36%, today’s average 30-year mortgage rate is still much higher than it was just a few years ago.
These higher borrowing costs have made buying a home significantly more expensive for prospective buyers. For example, when buying a $400,000 home with 20% down, the monthly mortgage payment (principal and interest only) has gone from about $1,350 at 3% to over $2,100 at 7%. That’s an over 50% increase in costs from rising rates alone, and that’s not accounting for the home price appreciation that occurred over this period, either.
Between today’s elevated mortgage rates and home values, the affordability challenge for buyers is very real. That’s why many would-be homebuyers are looking for smart ways to mitigate the high costs of buying a home today by locking in a decent mortgage deal. And, the good news is that there are a few ways you can still do that.
Get started and compare your top mortgage loan offers today.
5 strategies for dealing with today’s high mortgage rates
Here are some strategies buyers can consider when dealing with today’s high mortgage rate environment:
Make a larger down payment
The more you can put down, the lower your overall mortgage amount will be and the less in total interest you’ll pay. Lenders also tend to offer the best mortgage rates to the buyers who are the least risky to lend to, and if you’re capable of putting more down on your home, you’re less likely to default on your loan. In turn, you could snag a lower mortgage rate by making a higher down payment (provided that the rest of your borrower profile supports it).
Putting at least 20% down also helps avoid costly private mortgage insurance (PMI). An extra PMI charge can add hundreds of dollars to your loan costs each month, so avoiding that extra charge — and potentially securing a lower rate — could make the extra down payment costs worth it.
Explore the best mortgage loan rates available to you here.
Explore an adjustable-rate mortgage
Opting for an adjustable-rate mortgage (ARM) loan could also be another strategy worth employing right now. An ARM loan comes with a fixed period of interest followed by a variable rate, meaning that the mortgage rate can change over time depending on the overall rate environment. While these loans can be riskier long-term if rates climb in the future, there’s a good chance, given today’s high-rate environment, that rates will, at some point, adjust downward in the future.
That can be a positive for homeowners with ARM loans. If rates decline after your loan’s fixed-rate loan period, you could end up saving money on interest charges in the future. That can make an ARM worthwhile — and it can also be a smart move if you plan to move or refinance before the adjustment period starts.
Look into first-time homebuyer programs
If you’re buying a home for the first time, it could be worth looking into assistance programs in your area that are geared specifically toward first-time homebuyers. Many state and local housing authorities offer special mortgage programs to help first-time and lower income buyers overcome down payment and affordability hurdles. These may include lower interest rates, discounted mortgage insurance premiums or even grants for down payments or closing cost assistance. There are often income limits, but these programs can make buying much more affordable in today’s high-rate environment.
Get a piggyback loan
Another strategy to consider employing is a piggyback loan. With this approach, you can potentially get a lower overall mortgage rate and avoid PMI, as you’re taking out two simultaneous loans on the home purchase instead of one. This, in turn, can result in lower mortgage loan payments.
For example with a piggyback or “80/10/10” loan, you get:
- A first mortgage for 80% of the home’s purchase price
- A second smaller “piggyback” mortgage for 10% of the purchase price
- You put 10% down in cash
So for a $500,000 home purchase, you might get:
- First mortgage for $400,000 (80%) at a 7% interest rate
- Second piggyback mortgage for $50,000 (10%) potentially at a lower rate like 5-6% since it’s a smaller loan amount
By splitting your mortgage into two pieces, you are essentially putting 20% down between the 10% cash down payment and 10% second mortgage. This allows you to avoid having to pay private mortgage insurance premiums.
The main advantage of the piggyback approach comes if you can secure a lower interest rate on the smaller 10% second loan compared to the rate you’d get on a single larger 90% mortgage. Even if the rate on the first 80% loan is the same, the blended overall rate between the two loans may beat what you’d pay on a conventional 90% mortgage with PMI.
Buy discount points to lower your rate
Buying mortgage points upfront can also potentially reduce your effective mortgage rate. One discount point typically costs 1% of the total mortgage amount and allows you to permanently buy down your interest rate by about 0.25%.
For example, if you’re taking out a $400,000 mortgage at 7%, buying 1 discount point would cost $4,000 upfront but could lower your mortgage rate to around 6.75%. Over the full loan term, this could save you thousands in interest payments.
The more points you buy upfront, the lower your mortgage rate goes. While an upfront investment, buying discount points can make sense if you plan to stay in the mortgage for several years and the interest savings over time outweigh the upfront cost. However, points are not worth paying for if you plan to sell or refinance the mortgage in just a few years before you can recoup the upfront cost through interest savings.
The bottom line
Higher mortgage rates are likely going to stick around for a while as the Fed maintains its stance against inflation. But there may be solutions to the elevated cost of financing a home in today’s high-rate environment, like buying discount points or opting for a piggyback loan. These, and the other smart mortgage strategies outlined above, may help keep monthly payments as low as possible and secure an affordable path to homeownership.
CBS News
How to watch the Minnesota Vikings vs. Chicago Bears NFL game today: Livestream options, more
Getty Images
The Minnesota Vikings will take on the Chicago Bears today. The Vikings are currently 8-2, an impressive run so far this season, and will be looking to add a fourth win to their current streak after last Sunday’s 23-13 win against the Tennessee Titans. The Bears, on the other hand, are entering this game on the heels of a four-game losing streak after a tough 20-19 loss against the Green Bay Packers last Sunday.
Here’s how and when you can watch the Vikings vs. Bears game today, whether or not you have cable.
How and when to watch the Minnesota Vikings vs. Chicago Bears
The Vikings vs. Bears game will be played on Sunday, November 24, 2024 at 1:00 p.m. ET (11:00 a.m. PT). The game will air on Fox and stream on Fubo and the platforms featured below.
How and when to watch the Minnesota Vikings vs. Chicago Bears game without cable
You can watch this week’s NFL game on Fox via several streaming services. All you need is an internet connection and one of the top options outlined below.
Fubo offers you an easy, user-friendly way to watch NFL games on CBS, Fox, NBC, ABC, ESPN, and NFL Network, plus NCAA football channels. The Pro tier includes 200+ channels and unlimited DVR, while the Elite with Sports Plus tier adds NFL RedZone and 4K resolution. New subscribers get a seven-day free trial and all plans allow streaming on up to 10 screens simultaneously.
You can watch today’s game with a subscription to Sling’s Orange + Blue tier, which includes ESPN, ABC, NBC, and Fox. The plan offers 46 channels with local NFL games, nationally broadcast games and 50 hours of DVR storage. For complete NFL coverage, add Paramount+ to get CBS games, or upgrade with the Sports Extra add-on for additional sports channels like Golf Channel, NBA TV and NFL RedZone.
Watching NFL games, including Fox broadcasts, is simple with Hulu + Live TV, which includes 90 channels, unlimited DVR storage, and access to NFL preseason games, live regular season games and studio shows. The service includes ESPN+ and Disney+ in the subscription.
Want to watch today’s game live on your smartphone? If so, NFL+ streaming service is the solution you’re looking for. It lets you watch NFL Network and out-of-market games on mobile devices, with an upgrade option to NFL+ Premium that includes NFL RedZone for watching up to eight games simultaneously. Note that NFL+ only works on phones and tablets, not TVs.
CBS News
How to watch the Detroit Lions vs. Indianapolis Colts NFL game today: Livestream options, more
Nic Antaya/Getty Images
The Detroit Lions will face off against the Indianapolis Colts today. The Lions enter this game as top contenders with a near-perfect record of 9-1 so far this season. The Colts, who are 5-6 this season, could have a tough game on their hands against the Lions but will be looking to rack up another win after prevailing over the New York Jets in a tight game last Sunday.
Here’s how and when you can watch the Colts vs. Lions game today, whether or not you have cable.
Here’s how and when to watch the Detroit Lions vs. Indianapolis Colts
The Lions vs. Colts game will be played on Sunday, November 24, 2024 at 1:00 p.m. ET (11:00 a.m. PT). The game will air on Fox and stream on Fubo and the platforms featured below.
How and when to watch the Detroit Lions vs. Indianapolis Colts game without cable
You can watch this week’s NFL game on Fox via several streaming services. All you need is an internet connection and one of the top options outlined below.
Experience NFL action like never before with Fubo’s comprehensive sports streaming platform. From Sunday showdowns to primetime matchups, catch every NFL game across major networks including CBS, Fox, NBC, ABC, ESPN and NFL Network. Choose the Pro package to unlock 200+ channels and limitless DVR storage, or elevate your game-day experience with the Elite with Sports Plus package, featuring NFL RedZone’s commercial-free scoring highlights and stunning 4K quality.
Test drive the service with a no-commitment seven-day free trial, and share the excitement with family and friends — Fubo supports simultaneous streaming on up to 10 devices, so everyone can watch their favorite teams.
You can watch today’s game with a subscription to Sling’s Orange + Blue tier, which includes ESPN, ABC, NBC, and Fox. The plan offers 46 channels with local NFL games, nationally broadcast games, and 50 hours of DVR storage. For complete NFL coverage, add Paramount+ to get CBS games, or upgrade with the Sports Extra add-on for additional sports channels like Golf Channel, NBA TV and NFL RedZone.
Watching NFL games, including Fox broadcasts, is simple with Hulu + Live TV, which includes 90 channels, unlimited DVR storage, and access to NFL preseason games, live regular season games and studio shows. The service includes ESPN+ and Disney+ in the subscription.
Want to watch today’s game live on your smartphone? If so, NFL+ streaming service is the solution you’re looking for. It lets you watch NFL Network and out-of-market games on mobile devices, with an upgrade option to NFL+ Premium that includes NFL RedZone for watching up to eight games simultaneously. Note that NFL+ only works on phones and tablets, not TVs.
CBS News
How to watch the New England Patriots vs. Miami Dolphins NFL game today: Livestream options, more
Getty Images
The New England Patriots will face off against the Miami Dolphins in a game today at the Hard Rock Stadium in Miami. The Patriots have had an uneven season so far, coming into the game with a record of 3-8, including a 28-22 loss to the Los Angeles Rams on November 17. The Dolphins, however, haven’t fared much better this season as they enter the game with a record of 4-6, although they are coming off two wins in a row, the latest against the Las Vegas Raiders last weekend.
Keep reading to find out how and when to watch the New England Patriots vs. Miami Dolphins game today, even without cable.
CBS, Paramount+ and CBS Essentials are all subsidiaries of Paramount Global.
How and when to watch the New England Patriots vs. Miami Dolphins game today
The New England Patriots vs. Miami Dolphins game will be played on Sunday, November 24, 2024 at 1:00 p.m. ET (10:00 a.m. PT). The football game will be shown on CBS and streamed on Paramount+ and the platforms noted below.
How and when to watch the New England Patriots vs. Miami Dolphins game without cable
While CBS is available with many basic cable packages, you’ll have other viewing options, too for the Patriots-Dolphins game. Just understand that the below streaming options will require the use of an internet provider:
Paramount+: Watch CBS-aired NFL games without cable
With Paramount+ you’ll have multiple viewing options to choose from. You can catch NFL games on the Paramount+ Essential tier for just $7.99 each month or you can watch college football with a Paramount+ with Showtime subscription for $12.99 monthly. In addition to live streams of NFL games airing on CBS, you’ll get to watch additional live sporting events including NCAA college football, PGA Tour golf, soccer and more.
Get started with Paramount+ here today.
Amazon Prime Video: Add Paramount+ to your existing subscription
Already have an Amazon Prime Video account? Simply add Paramount+ to your current subscription to watch all the CBS-aired NFL games in addition to Paramount+ originals. The same prices from above apply, depending on which tier you choose. Not sure which is best for you? Don’t worry. Both options come with a free seven-day trial that can help you decide.
Watch the Patriots-Dolphins game on Amazon Prime Video.
Fubo: Watch the Patriots-Dolphins game for free
Looking for an inexpensive way to watch football? Fubo could be the best way to do so. The live TV streamer is currently offering a seven-day free trial and $30 off of your first month’s subscription. Once subscribed, you’ll gain access to all of their live sporting events immediately. And there will be a lot to choose from. Not only does Fubo come with access to NFL games airing on your local CBS channel, it also includes Fox Sunday NFC games, “Sunday Night Football” on NBC, “Monday Night Football” on ABC and ESPN and all of the games that air on the NFL Network. So don’t wait.
Get started with Fubo online now.
How to watch the Minnesota Vikings vs. Chicago Bears NFL game today: Livestream options, more
How to watch the Detroit Lions vs. Indianapolis Colts NFL game today: Livestream options, more
How to watch the New England Patriots vs. Miami Dolphins NFL game today: Livestream options, more
How to watch the Minnesota Vikings vs. Chicago Bears NFL game today: Livestream options, more
How to watch the Detroit Lions vs. Indianapolis Colts NFL game today: Livestream options, more