Updated
What does the latest mortgage rate update mean for South Carolina buyers?
For the week of September 17, 2026, Freddie Mac's national survey reported a 6.95% average for a 30-year fixed mortgage, up from 6.76% a week earlier and 6.26% a year earlier. The 15-year average was 6.26%. Higher borrowing costs make it important to compare the full payment and cash needed to buy.
Rate context: These dated national averages are not South Carolina-specific rates, APRs or Beaufort Lending quotes. The survey generally reflects conventional purchase borrowers with good or excellent credit and 20% down; it excludes average fees and points. Your rate depends on your finances, property, loan type and lock timing. Check the source for later releases.
Benji's advice: buckle down on what you can control
Benji Gecy began his mortgage career in 1996–97. His advice: explore seller-paid temporary buydowns and build a budget that works without counting on rates to fall.
“I think it's time to buckle down and talk about what buyers can actually do in this higher-rate environment.”
How do seller-paid 2-1 and 3-2-1 buydowns work?
A temporary buydown uses a funded subsidy to reduce your initial share of principal and interest. A 2-1 plan generally calculates that share two percentage points below the note rate in year one and one point below in year two, followed by full payments from year three. A 3-2-1 plan steps through three, two and one point below, followed by full payments from year four. These are percentage-point differences, not percentage discounts on the payment.
On a fixed-rate mortgage, the contractual interest rate stays fixed. The subsidy provides temporary payment relief; it does not permanently reduce the rate or remove taxes and insurance. Under Fannie Mae's buydown rules, qualification uses the full note rate and seller-funded subsidies count toward contribution limits. Loan-program and lender availability need review, especially for a 3-2-1 plan.
What should you ask the seller to contribute?
Benji recommends comparing seller-funded relief before automatically choosing an adjustable-rate mortgage. A seller may agree, decline or counter. Compare these requests:
- Temporary buydown: lower introductory payments, followed by the full payment.
- Closing-cost credit: less eligible cash due at settlement, potentially preserving savings.
- Lower price: potentially a smaller loan and less interest over time.
Paying discount points for a permanent rate reduction is another comparison. Unlike a temporary subsidy, points may lower the contractual rate. The CFPB explains the tradeoff. Compare costs over your expected ownership period and confirm permitted seller contributions.
Use these calculators to check your payment and debt load
Start with the full payment, then examine any introductory relief. These tools provide educational estimates, not loan approval:
- 2-1 buydown calculator: estimate introductory principal-and-interest payments and the subsidy cost. The current tool models 2-1 plans; ask us separately about 3-2-1 options.
- Mortgage payment calculator: include property taxes, homeowners insurance, applicable mortgage insurance and association dues. Add separate flood insurance where needed.
- Debt-to-income ratio calculator: compare proposed housing costs and other monthly debt payments with gross monthly income, before taxes and deductions. Lender and program limits vary.
Use property-specific tax and insurance estimates, especially for coastal homes. Leave room for maintenance and emergency savings.
Plan for the full payment, even if you hope to refinance
A fixed-rate mortgage keeps its contractual rate; an adjustable-rate mortgage (ARM) may change after its introductory period. Compare any ARM's adjustment schedule, caps and possible payments. With either choice, a future refinance depends on eligibility, property value, costs and available rates.
Existing homeowners have no purchase seller to fund a credit. Compare any refinance with your current payment, costs and remaining term. Extending repayment can lower the monthly payment while increasing total interest. Keeping your existing loan may be the stronger choice.
Frequently asked questions
What happens to unused buydown funds if I refinance?
The written agreement and applicable program rules determine how remaining funds are handled. Ask before closing; do not assume unused funds are automatically refunded.
Can I submit a scenario before finding a home?
Yes. Start with your budget, savings and timeline. An address lets us refine property costs later; scenario review is separate from an application and final approval.
Ready to compare your options?
Build a mortgage plan around your budget
Share your purchase plans or current loan details. We can review available options and preliminary payment and closing-cost estimates.
Benji Gecy, NMLS #302188 · Beaufort Lending, NMLS #1703543 · Equal Housing Lender
Related South Carolina mortgage guides
Educational information, not an approval, rate lock or commitment to lend. Programs, terms and pricing depend on borrower qualifications, property review and current lender guidelines. Source information checked September 17, 2026.
