You are not alone in yearning for the days when interest rates were historically low.

Freddie Mac reports that the average rate on 30-year mortgages has more than doubled this year, from approximately 3% to 6.6%. Subsequently, average monthly payments have increased by fifty percent in a short period of time.

Payments and mortgage rates are, thankfully, subject to change. Even in the current difficult market, there are a number of strategies that can reduce your interest rate and make purchasing a home more affordable.

Do you intend to purchase a home in spite of the increase in interest rates? For assistance, consider one of these mortgage rate workarounds.

Ask the seller for help

Although it may appear paradoxical, sellers frequently participate in efforts to lower the interest rate of a purchaser, at least in current high-rate markets.

Here is how it works: In exchange for what is known as a "concession," the seller allocates a proportionate amount of their sale proceeds towards the transaction. In return for the lender receiving those funds, the mortgage rate is reduced.

Permanent reductions entail a reduced interest rate and monthly payment for the duration of the loan, while temporary reductions merely entail lower expenses during the initial few years. For instance, a 2/1 buydown would result in an initial payment and rate reduction of 2% in year one, followed by a 1% reduction in year two. By year three, the terms and payment would revert back to those that were initially quoted.

However, exercise caution regarding temporary buydowns if you opt for this course of action. Mortgage lenders will assess your eligibility for the loan based on the ultimate interest rate, not the reduced one; therefore, ensure that the increased payments are affordable.

Assume the seller's mortgage

Prior to the past few months, low mortgage rates were commonplace; now, 85 percent of homeowners with mortgages have rates below 5 percent, according to an analysis by Redfin. If that sounds enticing, you may want to contemplate the possibility of assuming the seller's mortgage.

In essence, assuming a mortgage is accepting it. You will purchase the home, but rather than applying for an entirely new mortgage, you will continue making payments on the existing loan in accordance with the terms and interest rate that the previous owner left behind.

To accomplish this, you must bring a substantial amount of money. You must have an amount sufficient to cover the seller's entire home equity, which is the difference between the home's price and their mortgage balance, for them to be paid. As an illustration, suppose the property is valued at $300,000 but the owner still owes $230,000 on their mortgage. In this case, you would be required to provide a down payment of $70,000, which is paid directly to the vendor and not the lender.

Loan assumptions are not permitted for every form of mortgage. They are permitted on government-backed loans such as VA, USDA, and FHA mortgages. Conventional loans, comprising approximately 65% of the current mortgage market, do not.

Be patient, assuming you manage to surmount each of those obstacles. "The process may require a maximum of ninety days to finalize," explains loanDepot's executive director, Dan Hanson.

Purchase points

You can negotiate your own mortgage rate reduction. The term for this is "buying points."

Although an initial payment of 1% of the loan amount is necessary to secure a 0.125 to 0.50 percentage point reduction in interest, this can substantially diminish your monthly payments.

A monthly payment of $2,844 would be required to purchase a median-priced property ($454,900) at a 7% interest rate with a 6% down payment (the average for first-time buyers). However, by reducing your interest rate to 6%, you could achieve a reduction of over $300 in that sum.

When considering the purchase of points, ensure that you intend to remain in your residence for a sufficient duration to benefit from them. This can be determined by calculating the breakeven point, which is the month during which the cost of the buydown was recouped in savings. The breakeven point would be attained in thirty months if purchasing points results in a monthly savings of $300 and an initial investment of $9,000 (9,000 divided by 300).