Buydown refresher
Sales price reduction = seller can lower your mortgage payment
A conversation I have been having with my homebuyer clients recently is:
Price reduction = Opportunity
When the seller does a price drop, usually $5,000 - 10,000 or more, why not offer the original sale price and ask for a matching credit?
Example: A property is originally listed at $300,000, then does a price drop to $290,000. Why not offer $300,000 and have the seller pay for all of your closing costs AND reduce your first year interest rate by 2% and your second year by 1%?
Did you know there are two ways a seller can help reduce your monthly payment?
Instead of taking a $6k sales price reduction, the seller can reduce your monthly payment by 2% the first year, and 1% the second year. That’s a $360/month reduction in the first year, and $180 reduction year two for a typical Milwaukee mortgage! This is called a temporary rate buydown, or a 2/1 buydown.
OR!
Instead of taking a $6k sales price reduction, the seller can permanently lower your rate by about .75% – for 30 years! That’s a $150/month reduction forever on a typical Milwaukee mortgage!
There are creative ways to make your home more affordable while we wait for rates to go down!
Questions? As always, give me a call or text at 414-488-0438
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