Interest rate buydowns for home loans are coming back into focus.
What are the benefits of an interest rate buydown and who is the best candidate? In general the best candidate for an interest rate buydown would be someone who is expecting to have a greater income in a couple of years. A buydown allows the home buyer to ease into a higher rate (payment) in year #2 and #3. Another candidate would be someone who perhaps sees the home as a short term investment if he/she moves or transfers often.
In light of rising home prices and interest rates, a buydown can … (5 comments)
If you've been involved the mortgage or real estate business for any period of time you've heard the term "TRUSTED MORTGAGE ADVISER". A lot of loan officers have used it as a marketing catch phrase.
Who would not want a trusted mortgage adviser all the time? Every borrower wants it and every loan officer should live up to it to the best of their ability.
Now more than ever borrowers do need the trusted adviser because we are in uncharted territory. I'm getting calls and emails from folks saying I heard the interest rates dropped to … (3 comments)
interest rate: WAITING FOR A LOWER INTEREST RATE!
- 10/19/11 07:31 AM
WAITING FOR A LOWER INTEREST RATE! I am amazed each and every day to learn that someone I speak with is waiting for a lower interest rate before they refinance. I just spoke with someone with an adjustable rate due to change in December. He wonders if the rates are going to get better. Maybe because I am in the business, I don't know, but I have a hard time understanding the mentality of waiting for a lower interest rate these days. I have one borrower who refi'ed about 2 years ago for a 5.375% fixed 30 year rate. At the … (0 comments)
interest rate: WHY DON'T BORROWERS UNDERSTAND LOAN TERMS?
- 07/18/11 05:47 AM
WHY DON'T BORROWERS UNDERSTAND LOAN TERMS? As a loan originator who has worked in the industry for nearly 14 years I simply cannot understand why a borrower would call me and say they have been quoted a 4% interest rate on a thirty year mortgage and want to know if that is a good deal. Heck yeah! That rate, with zero origination, zero points, no built in buydown using the equity, low closing costs, fixed for thirty years, no prepay penalty, Trust me, I'm glad to get the call but it is frustrating that consumers are so easily misled! Once that carrot … (4 comments)
Interest Rate Buydowns 
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