Based on today's rates, a buyer can get a 30 year fixed rate mortgage on a 2/1 buydown (rate is bought down 2% the first year and 1% the second year) with a rate of 3.75% the first year, 4.75% the second year, and 5.75% years 3 through 30! This gives you a better payment and cash out of pocket at closing than does a VA or an FHA loan!
There is a cost to do this of 2.1% of the loan amount and this can NOT be paid by the buyer - it can be paid by the Seller, the Realtor or the Lender, but NOT by the buyer. The price to do this and the rates that will be given can and do change daily and this is the rate as of today, Tuesday, December 9.
If you are a Realtor® with a very motivated seller, this program may be the perfect way to get your listing sold! If you are a seller looking to move fast, this may help you achieve that goal. If you are a buyer, this is a great program that will allow you to get in to the home of your dreams at a lower than usual rate that will gradually increase but it does cap at 2% over the start rate, hence the term 2/1 buydown!
Please feel free to contact me to discuss this, and other programs!
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