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Worrying mortgage rates will stay high forever? Nevertheless, here’s how to buy a home.

It’s no secret that signing a mortgage since the beginning of the year has become expensive. Interest rates have fluctuated slightly but have continued to rise since January. As of this writing, the average interest rate on a 30-year mortgage is 6.87%, Freddie Mac says. Now, it’s likely that mortgage rates will fall over time. But that might not happen for some time.

There are steps you can take to save on your mortgage, including improving your credit score to potentially qualify for a lower interest rate. But a credit score of 800 won’t magically lower the average 30-year mortgage rate from 6.87% to 5.1%.

Mortgage interest rates are primarily a function of market conditions. And now the situation is not very favorable for borrowers. So, if you’re hoping to buy a home this year, it may be helpful to focus more on ways to reduce your spending on the property you want to buy. Here are three options that could potentially reduce your spending on your home.

1. Buy a fixer upper

If you only want to buy homes that are clean and in move-in condition, you may end up spending a small fortune on real estate this year. However, if you’re looking to buy a home that needs work, you could potentially find some savings.

This means that if you are looking to purchase top fixtures, you will need to obtain a quote from a contractor or set of contractors before finalizing a purchase agreement. You don’t want to end up with costly repairs that will negate any savings you may have made from lower home prices.

For example, move-in ready homes in your target area may sell for an average of $500,000. The fixer-upper costs just $350,000. But if you’re looking at a job costing $150,000, you’re not really saving money. And, you’re taking on the hassle of having to live in a construction zone.

More: Find out how to choose the best mortgage lender.

2. Choose more up-and-coming neighborhoods

There are a variety of factors that can make one neighborhood more desirable than another, such as access to amenities and good schools. But if you’re willing to take a chance on an up-and-coming neighborhood, you may find that you can save money on your home.

That said, if you have children, it’s important to research school districts before settling in a neighborhood to ensure your children’s education doesn’t suffer. Also, recognize that it can take years for an emerging neighborhood to grow into a fully developed neighborhood. If you don’t think you can afford to sit for that long, you might want to stick with your existing neighborhood if you can afford the higher costs.

3. Find a home with a separate living space that you can rent out for income.

Maybe you don’t want to buy a house that needs work and you want to move to a specific neighborhood with a good reputation. If you can buy a home with a separate living area, like a finished basement, that might still be the case.

reason? You can also rent out space in your home for additional income. Then you can make it cheaper.

And remember, the tenant is not signing on to live under your roof forever. In a few years, as your income increases, you can reclaim the space you rent and enjoy more privacy as your financial situation improves.

Mortgage rates are likely to fall over time, but they are currently quite high. Although you may be able to save some money by improving your credit score and shopping through different mortgage lenders, these savings may be limited.

Therefore, it is better to focus on ways to save money on the purchase price of a home. But either way, try not to spend more than 30% of the cost of purchasing a home, including mortgage payments, property taxes, and homeowners insurance. If you exceed that threshold, you run the risk of falling behind not just on your housing costs, but on a variety of other bills across the board.

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