September 7, 2022

8 Strategies to Secure a Lower Mortgage Rate

Mortgage rates have been on a roller coaster ride this year, rising and falling amid inflationary pressures and economic uncertainty. And even the experts are divided when it comes to predicting where rates are headed next.1


This climate has been unsettling for some homebuyers and sellers. However, with proper planning, you can work toward qualifying for the best mortgage rates available today – and open up the possibility of refinancing at a lower rate in the future.

How does a lower mortgage rate save you money? According to Trading Economics, the average new mortgage size in the United States is currently around $410,000.2 Let’s compare a 5.0% versus a 6.0% fixed-interest rate on that amount over a 30-year term.

With a 5% rate, your monthly payments would be about $2,201. At 6%, those payments would jump to $2,458, or around $257 more. That adds up to a difference of almost $92,600 over the lifetime of the loan. In other words, shaving off just one percentage point on your mortgage could put nearly $100K in your pocket over time.

So, how can you improve your chances of securing a low mortgage rate? Try these eight strategies:

 

Raise your credit score.

Borrowers with higher credit scores are viewed as “less risky” to lenders, so they are offered lower interest rates. A good credit score typically starts at 690 and can move up into the 800s.3 If you don’t know your score, check with your bank or credit card company to see if they offer free access. If not, there are a plethora of both free and paid credit monitoring services you can utilize.

If your credit score is low, you can take steps to improve it, including:4

  • Correct any errors on your credit reports, which can bring down your score. You can access reports for free by visiting AnnualCreditReport.com.
  • Pay down revolving debt. This includes credit card balances and home equity lines of credit.
  • Avoid closing old credit card accounts in good standing. It could lower your score by shortening your credit history and shrinking your total available credit.
  • Make all future payments on time. Payment history is a primary factor in determining your credit score, so make it a priority.
  • Limit your credit applications to avoid having your score dinged by too many inquiries. If you’re shopping around for a car loan or mortgage, minimize the impact by limiting your applications to a short period, usually 14 to 45 days.5

Over time, you should start to see your credit score climb — which will help you qualify for a lower mortgage rate.

 

Keep steady employment.

If you are preparing to purchase a home, it might not be the best time to make a major career change. Unfortunately, frequent job moves or gaps in your résumé could hurt your borrower eligibility.

When you apply for a mortgage, lenders will typically review your employment and income over the past 24 months.5 If you’ve earned a steady paycheck, you could qualify for a better interest rate. A stable employment history gives lenders more confidence in your ability to repay the loan.

That doesn’t mean a job change will automatically disqualify you from purchasing a home. But certain moves, like switching from W-2 to 1099 (independent contractor) income, could throw a wrench in your home buying plans.6


Lower your debt-to-income ratios.

Even with a high credit score and a great job, lenders will be concerned if your debt payments are consuming too much of your income. That’s where your debt-to-income (DTI) ratios will come into play.

There are two types of DTI ratios:7

  1. Front-end ratio — What percentage of your gross monthly income will go towards covering housing expenses (mortgage, taxes, insurance, and dues or association fees)?
  2. Back-end ratio — What percentage of your gross monthly income will go towards covering ALL debt obligations (housing expenses, credit cards, student loans, and other debt)?

What’s considered a good DTI ratio? For better rates, lenders typically want to see a front-end DTI ratio that’s no higher than 28% and a back-end ratio that’s 36% or less.7

If your DTI ratios are higher, you can take steps to lower them, like purchasing a less expensive home or increasing your down payment. Your back-end ratio can also be decreased by paying down your existing debt. A bump in your monthly income will also bring down your DTI ratios.

 

Increase your down payment.

Minimum down payment requirements vary by loan type. But, in some cases, you can qualify for a lower mortgage rate if you make a larger down payment.8

Why do lenders care about your down payment size? Because borrowers with significant equity in their homes are less likely to default on their mortgages. That’s why conventional lenders often require borrowers to purchase private mortgage insurance (PMI) if they put down less than 20%.

A larger down payment will also lower your overall borrowing costs and decrease your monthly mortgage payment since you’ll be taking out a smaller loan. Just be sure to keep enough cash on hand to cover closing costs, moving expenses, and any furniture or other items you’ll need to get settled into your new space.

 

Compare loan types.

All mortgages are not created equal. The loan type you choose could save (or cost) you money depending on your qualifications and circumstances.

For example, here are several common loan types available in the U.S. today:9

  • Conventional — These offer lower mortgage rates but have more stringent credit and down payment requirements than some other types.
  • FHA — Backed by the government, these loans are easier to qualify for but often charge a higher interest rate.
  • Specialty — Certain specialty loans, like VA or USDA loans, might be available if you meet specific criteria.
  • Jumbo — Mortgages that exceed the local conforming loan limit are subject to stricter requirements and may have higher interest rates and fees.10

When considering loan type, you’ll also want to weigh the pros and cons of a fixed-rate versus variable-rate mortgage:11

  • Fixed rate — With a fixed-rate mortgage, you’re guaranteed to keep the same interest rate for the entire life of the loan. Traditionally, these have been the most popular type of mortgage in the U.S. because they offer stability and predictability.
  • Adjustable rate — Adjustable-rate mortgages, or ARMs, have a lower introductory interest rate than fixed-rate mortgages, but the rate can rise after a set period of time — typically 3 to 10 years.

According to the Mortgage Bankers Association, 10% of American homebuyers are now selecting ARMs, up from just 4% at the start of this year.12 An ARM might be a good option if you plan to sell your home before the rate resets. However, life is unpredictable, so it’s important to weigh the benefits and risks involved.

 

Shorten your mortgage term.

A mortgage term is the length of time your mortgage agreement is in effect. The terms are typically 15, 20, or 30 years.13 Although the majority of homebuyers choose 30-year terms, if your goal is to minimize the amount you pay in interest, you should crunch the numbers on a 15-year or 20-year mortgage.

With shorter loan terms, the risk of default is less, so lenders typically offer lower interest rates.13 However, it’s important to note that even though you’ll pay less interest, your mortgage payment will be higher each month, since you’ll be making fewer total payments. So before you agree to a shorter term, make sure you have enough room in your budget to comfortably afford the larger payment.

 
Get quotes from multiple lenders.

When shopping for a mortgage, be sure to solicit quotes from several different lenders and lender types to compare the interest rates and fees. Depending upon your situation, you could find that one institution offers a better deal for the type of loan and term length you want.

Some borrowers choose to work with a mortgage broker. Like an insurance broker, they can help you gather quotes and find the best rate. However, if you use a broker, make sure you understand how they are compensated and contact more than one so you can compare their recommendations and fees.14

Don’t forget that we can be a valuable resource in finding a lender, especially if you are new to the home buying process. After a consultation, we can discuss your financing needs and connect you with loan officers or brokers best suited for your situation.

 

Consider mortgage points.

Even if you score a great interest rate on your mortgage, you can lower it even further by paying for points. When you buy mortgage points — also known as discount points — you essentially pay your lender an upfront fee in exchange for a lower interest rate. The cost to purchase a point is 1% of your mortgage amount. For each point you buy, your mortgage rate will decrease by a set amount, typically 0.25%.15 You’ll need upfront cash to pay for the points, but you can more than makeup for the cost in interest savings over time.

However, it only makes sense to buy mortgage points if you plan to stay in the home long enough to recoup the cost. You can determine the breakeven point or the period of time you’d need to keep the mortgage to make up for the fee, by dividing the cost by the amount saved each month.15 This can help you determine whether or not mortgage points would be a good investment for you.

 

Getting Started

Unfortunately, the rock-bottom mortgage rates we saw during the height of the pandemic are behind us. However, today’s 30-year fixed rates still fall beneath the historical average of around 8% — and are well below the all-time peak of 18.45% in 1981.16, 17

And although higher mortgage rates have made it more expensive to finance a home purchase, they have also eliminated some of the competition from the market. Consequently, today’s buyers are finding more homes to choose from, fewer bidding wars, and more sellers willing to negotiate or offer incentives such as cash toward closing costs or mortgage points.

If you’re ready and able to buy a home, there’s no reason that concerns about mortgage rates should sideline your plans. The reality is that many economists predict home prices to continue climbing.18 So you may be better off buying today at a slightly higher rate than waiting and paying more for a home a few years from now. You can always refinance if mortgage rates go down, but you can’t make up for the lost years of equity growth and appreciation.


If you have questions or would like more information about buying or selling a home, reach out to schedule a free consultation. We’d love to help you weigh your options, navigate this shifting market, and reach your real estate goals!

 


Sources:

  1. Washington Post –
    https://www.washingtonpost.com/business/2022/08/04/mortgage-rates-sink-below-5-percent-first-time-four-months/
  2. Trading Economics –
    https://tradingeconomics.com/united-states/average-mortgage-size
  3. NerdWallet –
    https://www.nerdwallet.com/article/finance/what-is-a-good-credit-score
  4. Debt.org –
    https://www.debt.org/credit/improving-your-score/
  5. The Balance –
    https://www.thebalance.com/will-multiple-loan-applications-hurt-my-credit-score-960544
  6. Time –
    https://time.com/nextadvisor/mortgages/how-lenders-evaluate-your-employment/
  7. Bankrate –
    https://www.bankrate.com/mortgages/why-debt-to-income-matters-in-mortgages/
  8. NerdWallet –
    https://www.nerdwallet.com/article/mortgages/payment-buy-home
  9. Consumer Financial Protection Bureau –
    https://www.consumerfinance.gov/owning-a-home/loan-options/
  10. NerdWallet –
    https://www.nerdwallet.com/article/mortgages/jumbo-loans-what-you-need-to-know
  11. Bankrate –
    https://www.bankrate.com/mortgages/arm-vs-fixed-rate/
  12. MarketWatch –
    https://www.marketwatch.com/picks/as-mortgage-rates-rise-heres-exactly-how-more-homebuyers-are-snagging-mortgage-rates-around-4-01656513665
  13. Consumer Financial Protection Bureau –
    https://www.consumerfinance.gov/owning-a-home/loan-options/#anchor_loan-term_361c08846349fe
  14. Federal Trade Commission –
    https://consumer.ftc.gov/articles/shopping-mortgage-faqs
  15. Bankrate –
    https://www.bankrate.com/mortgages/mortgage-points/
  16. CNBC –
    https://www.cnbc.com/select/mortgage-rates-today-still-relatively-low/
  17. Rocket Mortgage –
    https://www.rocketmortgage.com/learn/historical-mortgage-rates-30-year-fixed
  18. MarketWatch –
    https://www.marketwatch.com/picks/continuing-home-price-deceleration-heres-what-5-economists-and-real-estate-pros-predict-will-happen-to-the-housing-market-this-year-01659347993

What You Can Negotiate in a Home Purchase (That Most Buyers Don't Realize)

July 1, 2026
When most people picture negotiating on a home, they picture one number: the list price. You offer somewhere under the asking price, the seller counters, you settle in the middle, and whoever gives up the most ground "loses." For a lot of buyers, that back-and-forth over the sale price is the negotiation. It's only a fraction of it. The price is the headline. The real negotiation happens in the terms underneath it, and right now those terms are where the money is. Buyers have more room to ask than they've had in years. The market has tilted in their favor, and it's showing up at the closing table: in 2025, 62.2% of buyers paid below the list price, and the typical below-list buyer saved 7.9% — about $31,592 — the biggest discount in over a decade.¹ So here's what actually separates the buyers who come out ahead. It isn't the ones who push hardest on the price. It's the ones who understand everything that's on the table, and know which things are worth asking for. The Price-Only Trap It's easy to assume a seller cares about one thing: the highest possible number. In practice, most care about more than that. They care about certainty, meaning whether the deal will actually close. They care about timing. They care about whether your financing will hold together or fall apart three weeks in. That matters for you, because it means you have more to work with than a single figure. A buyer who treats the offer as a package — price, terms, timing, and risk all together — can often create a better outcome than a buyer who just hammers on price and calls it a day. That's why a clean, well-structured offer can beat a higher one: to the right seller, the certainty is worth more than the extra dollars. So before you anchor on a number, widen the lens. Here's what else is on the table. The Money Levers Beyond the Price Some of the most valuable things you can ask for never touch the sale price at all. They change what you actually pay out of pocket. Start with a seller concession. This is money the seller agrees to credit you at closing, most often to cover part of your closing costs, which typically run 2% to 5% of the purchase price.² Rather than cutting the sale price, the seller puts cash toward those costs, lowering what you need to bring on closing day. It's worth asking for any time your upfront cash is the tightest constraint, which for a lot of buyers it is. And it's far from a long shot right now: about 44% of sellers recently gave buyers a concession of some kind, close to the highest share on record.³ A rate buydown is one of the least understood levers, and one of the most valuable. When you buy down the rate, someone pays the lender an upfront sum in exchange for a lower mortgage interest rate. In a negotiation, you ask the seller to be the one who pays it. A buydown can be permanent, lowering your rate for the life of the loan, or temporary. A common version, the "2-1 buydown," cuts two percentage points off your rate the first year and one point the second, then settles at the full rate. Builders have leaned on this hard: 64% were offering incentives like buydowns and closing-cost help earlier this year.⁴ It's worth understanding why this can beat a price cut outright. Take $10,000 off the sale price and your monthly payment barely moves, maybe a few dollars on a 30-year loan. Put that same $10,000 toward buying down your rate, and you feel it in every payment for as long as you own the home. It's the same money out of the seller's pocket, but a far bigger result in yours. The Inspection Is Your Second Negotiation Most buyers treat the home inspection as a hurdle to clear: pass it, and you move on. It's better understood as a second negotiation, and the leverage is usually built in, because an inspection on almost any home turns up something worth addressing. When it does, you generally have two options. You can ask the seller to make the repairs before closing, or ask for a credit instead so you can handle the work yourself afterward. The credit is often the cleaner win. You control the contractor, the timeline, and the quality of the work, instead of depending on a seller's rushed, last-minute fix. A few rules of thumb. Focus on what genuinely matters, meaning health, safety, and the big-ticket systems like the roof, HVAC, or foundation, rather than nickel-and-diming every cosmetic flaw. Consider asking for a home warranty to cover the things that tend to break after you move in. And treat the report as a planning tool, not just a bargaining chip. A fifteen-year-old water heater isn't a reason to walk away. It's a heads-up that helps you budget. Terms and Timeline: The Wins That Aren't About Money One of the most powerful levers costs you nothing: flexibility. To a seller, time is often worth as much as dollars. Say the sellers need a few extra weeks in the home because their next place isn't ready. Offering a rent-back, which lets them stay on for a short period after closing, can make your offer the one they choose even over a higher bid. Or maybe they need to close fast, and you're in a position to deliver. The closing date, the possession date, the length of your contingency periods, even how your earnest money is structured: all of it is something you can shape. The strategic move is simple. Give the seller the timeline they need, and you'll often get the terms you want in return. What Actually Comes With the House This is the simplest ask of all, and the one buyers most often forget to make: what physically stays with the house. Appliances, window treatments, the mounted TVs, the washer and dryer, sometimes even furniture or the patio set you admired during the showing. A lot of it is negotiable. The law draws a line between fixtures, which are generally included, and personal property, which generally isn't, and that line is exactly where a quick ask can pay off. One rule matters above the rest: get every extra written into the contract. A friendly "sure, we'll leave the fridge" during a showing means nothing if it isn't on paper. And if there's something you want, ask for it. The worst answer you'll get is no. How to Actually Use the Whole Menu Knowing what's negotiable is the easy part. Using it well is what turns a list of asks into a better deal. The buyers who succeed don't fire off every possible demand at once. They lead with what the seller values most, group their requests thoughtfully, and avoid the death-by-a-thousand-cuts approach that makes a seller dig in. Above all, they read the seller's real motivation, and that's where a skilled agent earns their keep. It's no accident that 88% of buyers work with an agent, and that the help they value most is negotiating the terms of the deal.⁵ A calm, well-prepared buyer with a clear strategy almost always does better than an aggressive one throwing elbows. The goal isn't to beat the seller. It's to structure a deal that works for both sides, and to make sure you're not leaving value on the table you never knew was there. If you're getting ready to buy, this is exactly the kind of thing worth talking through before you write an offer. I'm glad to walk through everything you could be asking for in your particular situation. No pressure, just a clear picture so you can make a confident decision. Sources Redfin — Homebuyers Are Scoring the Biggest Discounts in 13 Years Redfin — What Are Closing Costs and How Much Will You Pay? Redfin — 44% of Home Sellers Are Giving Concessions to Buyers NAHB / WTOP — Builder Incentives and Rate Buydowns NAR — 2025 Profile of Home Buyers and Sellers

House Hacking in 2026: What the Hype Got Wrong — and What Actually Works

June 2, 2026
If you've spent any time on real estate TikTok in the last few years, you've probably seen the house hacking pitch. Buy a property, rent part of it out, let your tenants cover the mortgage. Live for free. Build wealth while you sleep. It sounds like the kind of thing that works great in a YouTube thumbnail and falls apart in real life. And honestly? Sometimes it does. But here's what those videos usually get right even when they oversell the outcome: housing costs have outpaced wage growth by a wide margin, and for the right buyer, generating income from a property can make ownership viable when it otherwise wouldn't be. The strategy is real. The "living for free" part is just the clickbait version of it. In 2026, the smarter question isn't whether house hacking works — it's whether it's the right fit for you, your market, and your numbers. Here's what that actually looks like. What House Hacking Actually Means House hacking is straightforward in concept: buy a primary residence and generate income from it to help offset the cost of owning it. The definition is that simple. The execution has a lot of range. The term got a lot of breathless social media attention a few years ago—often paired with promises of "living for free" or "having your tenants pay your mortgage." That framing wasn't entirely wrong, but it oversimplified things in ways that set some buyers up for disappointment. In 2026, the more useful way to think about house hacking isn't about eliminating a housing payment. It's about engineering a more manageable one. If a rental unit on a property generates $1,600 a month and the mortgage is $3,800, that $2,200 net payment might be very achievable where $3,800 wasn't. That's the real value—not a free house, but a door that was otherwise closed, now open. The Most Common Ways Buyers Are Doing It The ADU Boom Accessory Dwelling Units — often called ADUs, casitas, in-law suites, or backyard cottages — have become the gold standard of modern house hacking. An ADU is a secondary living unit on the same lot as a primary home. It might be a detached structure in the backyard, a converted garage, or a basement with its own entrance. ADUs have exploded in popularity for a simple reason: they're increasingly legal in places where they weren't before, and both the financing and the rental markets now support them. Fannie Mae made a significant policy update that took full effect in March 2026, allowing buyers to count projected ADU rental income toward their qualifying income when applying for a mortgage.¹ Specifically, lenders can now include ADU rental income on one-unit, owner-occupied purchase transactions, up to 30% of the borrower's total qualifying income.¹ That's a meaningful change. It means a buyer looking at a home with an ADU can leverage that unit's income potential before they ever sign a lease with a tenant. Multi-Generational Living House hacking isn't always about renting to strangers. For a growing share of buyers, it means sharing a home — and the costs that come with it — with family. Multi-generational home buying is sizable part of the market, with 14% of all home purchases nationally being multi-generational in the last year.² Gen X buyers led the charge, with 19% choosing multi-generational homes, and it's not hard to understand why.² That generation is often caught supporting both aging parents and adult children at the same time, and a home designed to accommodate multiple adults under one roof can solve several problems at once: caretaking, privacy, and cost. Among multi-generational buyers, 41% said the primary reason for their purchase was to care for or support aging parents — the highest share since tracking began in 2015.³ Another 23% said their main motivation was simply to spend more time with their parents.³ This isn't niche behavior. It reflects a real demographic and economic reality that's reshaping how families think about homeownership. The Classic Multi-Family Buying a duplex, triplex, or small multi-family property and living in one unit while renting the others is the original form of house hacking — and it still works. FHA loans allow buyers to purchase properties with up to four units with as little as 3.5% down, as long as the buyer occupies one unit as their primary residence. Eligible veterans can go even further with a VA loan, which requires no down payment at all on qualifying multi-unit properties. And for buyers who don't fit either of those boxes, Freddie Mac's Home Possible program allows qualified buyers to put as little as 3% down. The financing options for owner-occupied multi-family are genuinely more accessible than most buyers realize. For those willing to share a property line with their tenants, the income potential is typically higher than an ADU, and the strategy is time-tested.⁴ The Real Math Here's the truth about house hacking in 2026: the "living for free" narrative that circulated on social media was never universally achievable, and it's even rarer now. Interest rates have stabilized but remain elevated compared to the pandemic-era floor. Home prices, while not climbing at the same frenetic pace, are not meaningfully lower in most markets. Cash-flowing a property from day one — generating enough rental income to cover the entire mortgage — requires either very favorable market conditions or a large down payment. That's not a reason to dismiss the strategy. It's a reason to recalibrate expectations. The goal in 2026 isn't to eliminate a housing payment. It's to reduce it to something sustainable. In many cases, a well-chosen house hack turns an unaffordable property into a manageable one — and that's a significant win. Buyers who run realistic numbers, factor in vacancy periods and maintenance costs, and approach the strategy with patience tend to do well. Buyers who chase optimistic projections tend to struggle. Lenders have adjusted, too. The new Fannie Mae ADU income guidelines come with documentation requirements and a cap on how much of that income can be counted.¹ This is a reasonable safeguard, not a barrier — it filters out the wishful math and keeps the qualifying process grounded in real market data. Who This Works Best For First-time buyers facing an affordability gap. If income doesn't support the mortgage on a home that checks all the boxes, a property with rental potential can bridge that gap — both by reducing the net monthly payment and, in the case of ADU-eligible properties, by improving what a lender will approve in the first place. The sandwich generation. Gen X buyers, who are often supporting aging parents while still raising or housing adult children, have more motivation than any other group to maximize what a home does for them.² A property designed for multi-generational living isn't just a financial strategy; it's a practical solution to a real caregiving reality. NAR research shows that among Gen X multi-generational buyers, households with three or more income earners are increasingly common, which further strengthens the financial case.³ Future investors learning the ropes. Living in a property while managing a rental unit is one of the best ways to learn real estate investing without the full risk exposure of a standalone investment property. A buyer who spends two or three years in a house hack and then moves to their next home can keep the first property as a full-time rental — with tenant management experience already under their belt. What to Know Before Getting Started Zoning and local regulations are non-negotiable. ADU legality, short-term rental rules, and multi-family zoning vary dramatically by city and neighborhood. What's allowed three blocks away may not be allowed on the property being considered. Unpermitted units create liability headaches that outlast the savings they generate. Doing things by the book from the start isn't just the right approach — it's the only one that holds up over time. Run conservative numbers. Plan for vacancies. Budget for maintenance. Use realistic rent estimates based on comparable properties in the area, not best-case scenarios. If the math still makes sense when accounting for a month or two of vacancy each year plus routine repairs, it's a solid plan. If it only works at 100% occupancy with top-of-market rents, it's a risk. Be honest about lifestyle fit. Sharing a property with tenants — whether strangers renting an ADU or family members in a multi-generational setup — comes with real tradeoffs. It requires a certain temperament and a willingness to handle the occasional uncomfortable conversation. Buyers who go in with clear boundaries and realistic expectations tend to thrive. Those who underestimate the interpersonal dimension often don't. The Bottom Line House hacking is no longer a fringe idea for real estate investors. It's a mainstream strategy that serious buyers in 2026 are using to navigate a market that doesn't hand out easy answers. The fundamentals of homeownership — building equity, gaining stability, and creating long-term wealth — still hold. House hacking simply acknowledges that the path to those benefits sometimes requires a little more creativity with how a property is used. Every neighborhood is different. Zoning rules, rental demand, and property potential vary widely, and the right house hack for one buyer might look completely different for another. If you're wondering whether you're the right fit for this strategy, that's exactly the conversation worth having. Reach out and let's dig into what it could actually look like for your market and your numbers. Sources: 1. Fannie Mae / Pennymac Announcement 26-25: https://corr.pennymac.com/non-delegated-announcements/announcement-26-25 2. NAR 2026 Home Buyers and Sellers Generational Trends Report: https://www.nar.realtor/research-and-statistics/research-reports/home-buyer-and-seller-generational-trends 3. NAR Economists' Outlook – Multi-Generational Homes: https://www.nar.realtor/blogs/economists-outlook/making-extra-room-at-the-table-multi-generational-trends 4. Redfin – House Hacking: What Is It, and Why Is It So Popular?: https://www.redfin.com/blog/house-hacking/

Is Buying a Home Together Right for Your Family? Here's How to Think It Through

April 1, 2026
For a long time, multigenerational living had a reputation problem. It was the option families turned to when something had gone wrong — a job loss, a divorce, a health crisis. Moving back in with your parents, or having your parents move in with you, meant something hadn't worked out. That story has changed pretty significantly. Today, families are choosing this arrangement on purpose — not as a fallback, but as a deliberate decision to share costs, stay connected, and build something that actually works for how their lives are structured right now. According to NAR, 14% of buyers recently purchased a multigenerational home, and the year before that hit 17%. [1] These aren't people making the best of a bad situation. They're rethinking what "home" needs to do. If this is something you're considering — or something a family member has brought up — here's what's worth knowing before you start the search. Why More Families Are Going This Route The honest answer is: it's rarely just one thing. For most families, cost is somewhere in the mix. Buying together means more income earners on the loan, more people splitting the mortgage, and a monthly payment that's easier to justify. But if you talk to families who've actually done it, the financial piece rarely tells the whole story. Caregiving comes up constantly. Nearly half of multigenerational buyers in NAR's research cited caring for or wanting to be near aging parents as a primary reason for the purchase. [1][4] For older millennials in particular, aging-parent health and caretaking responsibilities were a major driver. That's not a trend that's going away — there are now more than 70 million Americans age 65 or older, and the question of how families want to handle that isn't one most people want to outsource entirely. [2] Remote work has also quietly changed the math. When you're not tethered to an office, living near family becomes less of a sacrifice. You can be close without it costing you professionally, which is a relatively new dynamic. [3] And then there's the harder-to-quantify stuff — the daily support, the shared routines, the sense that you're not navigating things alone. For families with young kids, having grandparents nearby can be transformative. For families with aging parents, so can having adult children close. The point is: if you find yourself drawn to this idea, you're in good company, and your reasons are probably more layered than just the numbers. What to Actually Look for in a Property This is where a lot of families get tripped up. They find a house they love, start imagining how it could work, and convince themselves the layout is more flexible than it really is. Then six months into living together, they realize what they actually needed was a separate entrance, not just a second bathroom. The properties that work best for multigenerational living tend to share a few things in common. They take privacy seriously. Not just in theory, but in the layout. Dual primary suites, separate entrances, a finished basement with its own sitting area, or a detached guest house — these aren't luxury features, they're what make the arrangement actually sustainable. If each household can't fully decompress, host their own guests, and keep their own rhythm, the togetherness part gets old fast. Home design professionals increasingly flag this as the most important feature to get right, and it's easy to see why. [5][6] They're built — or can be converted — for flexibility. ADUs (accessory dwelling units) have become a serious part of this conversation as more cities loosen zoning restrictions. A detached ADU gives you the ultimate setup: close enough to matter, separate enough to breathe. If an ADU isn't already in place, it's worth asking whether the lot and local zoning would allow for one down the road. [5][6] They work for the long game. Think about where everyone in the arrangement will be in ten or fifteen years. First-floor suites, wider hallways, zero-step entries, and rooms that can adapt as needs change aren't just nice to have — they're what make a multigenerational home function well over time rather than just right now. [6][7] The short version: the best multigenerational properties support both togetherness and independence. If a home checks one but not the other, keep looking. The Conversations Most Families Skip Here's the part that tends to get glossed over, because the emotional pull of the idea is strong and the practical details feel like they can wait. They can't. Start with the financial structure early. If multiple people will be on the loan, everyone needs to understand what that actually means. Co-borrowers can combine income and assets to qualify for more — but they also share legal responsibility for the debt and share in whatever equity the home builds. That's meaningfully different from being a co-signer, who carries the liability but doesn't own a piece of the property. Knowing which structure makes sense for your family is a conversation to have with a lender before you fall in love with a house. [8] Define ownership clearly. There are several ways to structure who owns what — joint tenancy, tenancy in common, shared-equity arrangements — and each one affects what happens if someone wants to sell, refinance, or passes away. Equal contributions don't automatically mean equal ownership makes sense, and unequal contributions don't mean anyone is getting a bad deal. But these things need to be spelled out explicitly, not assumed. [8] Get it in writing. A verbal agreement between family members feels fine when everyone is on the same page. It gets complicated when circumstances change — and circumstances always change eventually. A written agreement that covers shared expenses, maintenance responsibilities, common areas, and how exits would be handled gives everyone protection and, honestly, usually makes the conversations easier because you've already had them. [9] Talk through the "what-ifs" before closing. Job relocations, caregiving shifts, a marriage, someone wanting to sell — these aren't worst-case scenarios, they're just life. The way a home is titled can affect everything from Medicaid eligibility to how inheritance plays out. It's worth a conversation with an estate planning attorney or real estate attorney before you close, not after. [9] This stuff isn't fun to work through. But families who do it upfront tend to have far smoother experiences than those who assume it'll all work itself out. Is This Actually the Right Move? That depends on a few honest questions. Is everyone genuinely choosing this, or is someone going along with it? The families who thrive in multigenerational arrangements almost always went in with shared intent — everyone wanted it, everyone understood what they were agreeing to. That's different from one party tolerating it because the math made sense or because it felt like the easier thing to say yes to. Are the financial expectations clear and actually fair? Not just the down payment, but ongoing contributions, equity stakes, and what happens if someone needs to exit. These things are much easier to define before the purchase than to renegotiate afterward. Does everyone have a realistic picture of what shared space feels like day-to-day, long-term? Not on a good weekend when everyone's happy to be together — but on a random Tuesday when someone's had a bad day, the kids are loud, and you just want your house to yourself for an hour. If the answers to those questions are honest and mostly positive, multigenerational living can be genuinely great. The data backs that up. So do plenty of real families who've made it work. BOTTOMLINE Multigenerational living has moved from fallback plan to deliberate strategy for a growing number of families — and it's easy to understand why. The financial upside is real, the caregiving benefits are real, and when it's set up well, the emotional rewards are too. What makes it work is going in with eyes open: the right property, the right legal structure, and honest conversations before anyone signs anything. If this is something your family is exploring — or if it's on the horizon and you're not sure where to start — that's exactly the kind of conversation a good agent can help you think through. Getting the strategy right early makes everything that follows a lot smoother. Reach out anytime — even if you're just starting to think it through. Sources 1. National Association of REALTORS® — Making Extra Room at the Table: Multi-Generational Homes in the United States https://www.nar.realtor/blogs/economists-outlook/making-extra-room-at-the-table-multi-generational-homes-in-the-united-states 2. National Association of REALTORS® — The "Silver Tsunami" in Real Estate Is Here: Are You Ready? https://www.nar.realtor/magazine/real-estate-news/the-silver-tsunami-in-real-estate-is-here-are-you-ready 3. U.S. Census Bureau — New U.S. Census Bureau Data Show Detailed Characteristics of Home-Based Workers https://www.census.gov/library/stories/2025/01/work-from-home-inequalities.html 4. National Association of REALTORS® — One Big Happy Household: How Families and the Data Are Shaping Multigenerational Living https://www.nar.realtor/blogs/economists-outlook/one-big-happy-household-how-families-and-the-data-are-shaping-multigenerational-living 5. Better Homes & Gardens — Multigenerational Living Will Define the Future of Home Design, According to Thumbtack and Redfin https://www.bhg.com/thumbtack-redfin-home-design-report-2026-11869197 6. The House Plan Company — How 2025 Is Redefining Multigenerational Home Design https://www.thehouseplancompany.com/blog/how-2025-is-redefining-multigenerational-home-design/ 7. National Association of REALTORS® — All Under One Roof: Trends in Multigenerational Living https://www.nar.realtor/magazine/real-estate-news/home-and-design/all-under-one-roof-trends-in-multigenerational-living 8. The Mortgage Reports — How to Buy a House With Your Parents https://themortgagereports.com/77007/buying-a-home-with-parents-or-child 9. Elder Law Answers — Home Ownership When Parents and Adult Children Live Together https://www.elderlawanswers.com/what-are-the-house-ownership-options-when-parents-and-adult-children-live-together-14484