Sam Kerstetter, Stride Bank, NMLS: 2257278

04/07/2026

08/15/2025

What do these 3 buyers have in common? They are all buying the same home under different circumstances. I'll explain...

Buyers #1 and #2 bought their homes in today's market. One negotiated a price reduction, the other a permanent rate buydown. These are common scenarios I see today as a lender. High rates have sidelined many buyers, opening the door for current buyers to have more negotiating power.

Buyer #3 is like 40% of would be homebuyers waiting for a 5% rate. If rates fall that far, we can expect those buyers to enter the market. This increased demand will likely drive up home prices here in Tulsa. Buyer #3's scenario would become the norm.

He may be getting a better rate than the others, but he's sacrificing significant home equity for minimal payment savings (or none!). There’s also the increased risk of losing the home to higher bidders.

Moral of the story? If rates drop into the 5% range, buyers can expect to pay for a lower rate through a higher home price. This eats into mortgage savings. Buyers must take this into consideration when calculating what they can afford if waiting.

Everyone's situation is different when it comes to buying. There are pros and cons to every real estate cycle. Buy the home you love and you can afford long-term. Focus on the payment more than the rate. There are ways to make your payment more affordable despite high rates.

Give me a call or text with questions. I'm happy to go over payment scenarios, offer strategies, and go over any questions you have. My cell is (320)-905-3519.

- Sam

NMLS # 2257278
Stride Bank is An Equal Housing Lender

This post is for informational purposes only and does not constitute loan approval. Loan scenarios are based on a 780+ credit score and 20% down today. Future rates are used for example only and not guaranteed.

04/21/2025

5 Things I Believe as a Mortgage Lender That Others Disagree With Me On...

1. Just because you qualify for X amount doesn’t mean you can afford it. A healthy mortgage payment shouldn’t be more than 33% of your net income.

If your dream home prevents you from taking vacations with your family, saving for retirement, or living the way you want, it’s not worth it. Prioritize experiences over possessions. Just like we did with these elk because my wife wouldn't let me keep one.

2. Don’t marry the home and date the rate. No one knows if or when rates will drop. If you can’t afford the payment long-term, you’ll end up house poor.

On the flip side, if life dictates you need to move and you can afford it, you can’t afford to wait. 42% of potential buyers are waiting until rates fall into the 5% range. If that happens, it will create a surge of demand and increase home prices.

If you’re paying 10% more for a home, a 1% lower rate won’t impact your payment as much as you think. I’ve posted an example below.

3. Pay off debt instead of a large down-payment. Paying off car loans or credit cards typically saves you more money per month than sinking all your money into a home. The interest rates on a credit card can be up to 5x higher than mortgage rates as well. It also brings peace of mind having no debt except a mortgage.

4. Your primary home is not an asset if you have a mortgage. According to Robert Kiyosaki, an asset is something that puts money in your pocket every month. By his definition, your home is more the bank’s asset than yours.

Think about it, if you don’t make the payment, who does the home go to? The lender.

While your primary home can be a great way to build wealth/equity, it shouldn’t be your retirement plan or seen as an “investment”. Prioritize the home fitting your needs and budget more than it’s potential appreciation.

5. Renting is not always a waste of money. There are a variety of reasons people prefer to rent. It can be more convenient, less responsibility, and in some cases less expensive. Or instead of a down-payment, they’re putting money into other investments.

Now, if you’re renting because you’re trying to time the market or waiting for things to calm down, you’ll only miss out. Real estate values aren’t going down anytime soon. And if rates drop, prices will accelerate. The best time to buy real estate is always 5 years ago!

If you have any questions about financing a home here in Oklahoma or anywhere in the US, feel free to call or text me. My cell is 320-905-3519.

- Sam
- NMLS #2257278
- Stride Bank Is An Equal Housing Lender

02/22/2024

02/21/2024

Should you buy down your interest rate on a home right now? Here's what I recommend...

1. Determine how much it will cost and your monthly payment savings. To buy your rate down, you need to pay an upfront fee (discount points) at closing. 1 point = 1% of the loan amount. Here’s an example of how much a buydown costs and the monthly savings...

300k mortgage @ 6.75% w/ 0 points: $2,440/month PITI
300k mortgage @ 6% w/2 points ($6,000) paid at closing: $2298/month PITI.
Monthly payment difference = $142

FYI: When you’re shopping and a lender quotes you a rate, make sure you ask them if there are any discount points with that rate. When you get a loan estimate, look at section A on page 2 to see how many points are being charged (if any).

2. Find your break-even point. Take the cost of the buydown divided by the monthly payment savings. Using the numbers from #1, it’d be $6,000 / $142 = 42.25. This is how many months it’ll take for you to recoup the $6,000 paid for the rate buydown through monthly payment savings. You'd technically not have saved any money on your buydown until you passed this point.

3. How long do you plan to be in the home, and do you believe there will be a chance to refinance in the short-term? If you don’t plan to be in the home past the break-even point or you believe rates will come down in the next 2 years to refinance, that $6,000 might be better put towards a lower price, closing costs, new furniture, upgrades, repairs etc.

4. Are you or the seller paying for it? The above guidelines are important to consider either way. But if the seller is paying for it, a rate buydown is much more attractive since it's not your money that's being spent.

In this current environment, my general advice is to avoid buying your rate down unless you need to, or you can get your rate bought down so low that you likely won’t need to refinance later. With rates being predicted to drop in the next year or 2, I think it’s wiser to save that money for a rainy day or anything else I mentioned above. When it comes to large buydowns, if you can get your rate down into the low 5s, that’s a good long-term move and probably won’t have a need to refinance later. For example, I recently locked in a 4.5% rate for a client on a 15-year conventional loan with the buy-down cost being covered by the seller and us (Shoutout to Odell Properties!). It was their forever home, the seller was paying for it, and we both agreed it was unlikely rates would get that low again. I’ve also worked with clients that needed to buy their rate down to qualify, were more comfortable with securing the lower rate long-term, or because they had to have their payment under a certain amount. There’s nothing wrong with any of those things! What matters is finding a payment that works for you and that’s my job as a lender. These steps are intended to be a general guide when it comes to this aspect of buying a home.

If you’re thinking about buying a home here in the Tulsa area (or anywhere in the US!), feel free to give me a call/text me. My cell is 320-905-3519.

- Sam
NMLS # 2257278
*Stride Bank is an Equal Opportunity Lender
** “This is information only and should not be relied upon for loan approval. This is not an offer to lend. All mortgage loans are subject to credit approval. Some restrictions may apply.”