As 30-year mortgage rates hit 6.7%, homebuyers are facing ‘payment shock.’ Here are ways to save

Even though the housing market is cooling, buyers are still feeling the sting of high prices and higher interest rates.

According to Mortgage News Daily, the average rate on a 30-year fixed-rate mortgage was 6.7% on Friday, up from 3.3% at the beginning of the year. Home prices are up on average from a year ago.

Stephen Rinaldi is the president and founder of Rinaldi Group, a mortgage broker in Philadelphia. Sometimes the clients' payment is outrageous when the rate is in the 6's.

Car buyers pay 10% above the sticker price, on average, and workers reduce savings due to economic worries.

Interest rates can be significant. Monthly payments for principal and interest are only $1,896 on a $300,000 mortgage. A loan of 3% would result in a payment of $1,264, a savings of $632 a month. Property taxes or mortgage insurance would be added to the monthly amount.

There are ways to lower the cost of buying a home. There is no one-size-fits-all approach, but you can look at various options and see if they make sense for your situation.

There are some choices.

It is possible to consider an adjustable rate mortgage. The appeal is the lower initial rate compared to a fixed rate mortgage.

Depending on where interest rates are at the time, the rate is fixed for a set amount of time and then adjusted up, down or remains the same.

Experts recommend that you make sure you can afford the maximum rate if faced with it down the road, because there is a limit to how much the rate can change. A small percentage point can make a big difference in the monthly payment.

Rinaldi said that at any time before the rate adjusts, you may be able to refi your mortgage.

If you are planning to move before the initial rate period ends, you may want to consider anARM. It's wise to consider the possibility that you won't be able to move or sell because life happens and it's impossible to predict future economic conditions

The savings may not be worth the uncertainty if the rate is less than a fixed rate. Rinaldi said that some lenders aren't offering much in the way of a discounted rate.

A shorter loan with a better rate is appealing. According to Mortgage News Daily, the average rate for a 15-year loan is six percent. You save a lot of interest over the life of the loan and you build equity in the house quicker.

A $300,000 mortgage with a fixed 6.5% rate would cost $382,786 in interest over the life of the loan. A 15-year mortgage at the same rate would cost $170,438 in interest.

It’s not just the rate difference, but the equity buildup, too.

David Demming is the president of Demming Financial Services in Aurora, Ohio.

If the higher payment squeezes your budget too much, it might not be the best route.

If you are a first-time buyer, you may be able to qualify for one of the federal programs that help you buy a house with a lower down payment and reduced closing costs. Grants or no-interest loans can be used to help buyers cover their downpayment and closing costs.

Credit issues or short work histories can make it difficult for a potential home buyer to get a mortgage. They might need more time to save for a down payment but still want to live in a house.

It may be a good idea to consider a lease or rent-to-own contract. One of the most common aspects of these arrangements is for a portion of the rent to go into an escrow account until the date of purchase a couple or few years down the road. The money is forfeited if you walk away from the contract.

Demming said that it is important to do your due diligence and understand the terms of the contract, including the type of mortgage the property is eligible for and how the purchase price will be set.

The fees you pay for various aspects of the home-buying process can be negotiated by using a lower-cost title company. Depending on competing offers, the seller may be willing to pay some of your costs.

Extra points can be bought to get a lower interest rate.

It can take years to break even if you go this route.

Rinaldi said that you don't want to pay extra origination charges if you want to re-finance.