Overview of 6 (Real) Ways to Get a 6% Mortgage Rate in 2027
Dave Meyer argues that investors do not need to accept today’s high mortgage rates if they’re willing to negotiate creatively. The episode explains how to potentially get a mortgage rate in the 6% range, or lower, through seller concessions, builder incentives, turnkey-provider deals, seller financing, assumable mortgages, and self-funded rate buydowns. The core message: in a buyer’s market, investors should focus on cash flow at the actual purchase rate, not on “buy now and refinance later.”
Why Lower Rates Matter Right Now
- Mortgage rates are described as being at their highest level in over a year, with many forecasts expecting the 30-year fixed rate to stay in the mid-7% range.
- Higher borrowing costs make it harder for rental deals to cash flow.
- Meyer strongly pushes back on the idea that investors should rely on future refinancing:
- Underwrite deals to work today
- Use negotiation to improve the deal at acquisition
- Aim for cash flow and long-term hold stability
What a Mortgage Buydown Is
A buydown means paying money upfront to lower the interest rate.
Temporary Buydowns
- Common examples: 3-2-1 or 2-1 buydowns
- Rate is reduced for the first 1–3 years, then rises back to the original rate
- Useful for short-term relief, but risky if you assume refinancing later
Permanent Buydowns
- The rate is reduced for the entire loan term
- Better for investors who want predictable long-term cash flow
- Not all loan types allow temporary buydowns:
- Conventional investor loans: generally no temporary buydowns
- Portfolio loans: often allow both temporary and permanent buydowns
The 6 Strategies to Get a Lower Mortgage Rate
1. Seller Concessions
Ask the seller to pay for part of your rate buydown.
- Very effective in many markets right now
- Can be used instead of, or alongside, a price reduction
- Often better for cash flow than just lowering the purchase price
- Conventional loan cap:
- Roughly 2% of purchase price in seller concessions
- Example: on a $400,000 property, that’s about $8,000
- That can still meaningfully lower the rate, often by about 0.5%
- If you’re house hacking or doing a live-in flip, the cap can be much higher:
- Up to 9% concession cap with 25% down
- That can drop the rate dramatically, potentially into the mid-5% range
2. Builder Concessions
New construction is one of the best places to negotiate big incentives.
- Builders are offering incentives aggressively right now
- Many prefer concessions over price cuts because price cuts hurt future comps
- Common builder incentives:
- Closing cost credits
- Upgrades
- Warranties
- Rate buydowns
- Builders may offer:
- Temporary buydowns like 3-2-1
- Or, through preferred lenders, permanent buydowns
- This is one of the strongest opportunities in the market because builders are highly motivated to move inventory
3. Turnkey Provider Concessions
Turnkey rental providers can sometimes negotiate incentives on your behalf.
- These companies often buy properties in bulk from builders
- Because of their volume, they can negotiate:
- Better pricing
- Better concessions
- Preferred lending relationships
- Often tied to portfolio loans rather than conventional loans
- Can work for:
- New construction
- Renovated properties
- Some BRRRR-style deals
4. Seller Financing
Instead of getting a bank loan, the seller becomes the lender.
- Useful when the seller owns the property free and clear
- Terms are highly negotiable:
- Interest rate
- Down payment
- Amortization
- Balloon payment
- Can produce rates in the 3%–5% range if the seller is motivated
- Often a win-win:
- Seller gets steady passive income
- Buyer gets flexible financing
- Requires careful legal review and strong negotiation
5. Assumable Mortgages
Take over an existing mortgage with a low interest rate.
- A major opportunity for owner-occupants
- Only works for certain loans, especially:
- FHA
- VA
- USDA
- Typically not available for standard conventional investor loans
- Only for owner-occupied situations:
- Primary residence
- House hack
- Live-in flip
- You still need to cover the equity gap between the remaining loan balance and the purchase price
- This can be a huge advantage when assuming a loan from the COVID-era low-rate period
6. Buy Down the Points Yourself
You can pay points yourself if the deal supports it.
- Works especially well for long-term holds
- No cap if you’re using your own money
- Best when:
- You’re holding the property for 10–15+ years
- You’re buying at a discount
- You want to maximize lifetime savings
- Meyer emphasizes that the upfront cost can pay off through:
- Lower monthly payments
- Higher cash flow
- Lower total interest over time
- He notes this is often not worth it for short holds of just a few years
Key Takeaways
- Investors should focus on cash flow at acquisition, not hope for a future refinance.
- In today’s market, the biggest leverage often comes from negotiating concessions, not just price.
- The best opportunities tend to come from parties who are motivated to move inventory:
- Sellers with stale listings
- Builders
- Turnkey providers
- Sellers open to financing creatively
- For long-term investors, paying points or securing a permanent buydown can dramatically improve returns.
Bottom Line
The episode’s main point is that a 6% mortgage rate is still possible today if investors are willing to negotiate hard and use the right structure. Rather than waiting for rates to fall, Meyer encourages buyers to use leverage, creativity, and deal structure to improve affordability now.
If you’re buying in a buyer’s market, negotiate:
- Price
- Concessions
- Rate buydowns
- Creative financing terms
That combination can turn a marginal deal into a strong long-term rental investment.