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How a 1-0 Buy down Saves Your Clients $$$
Do you have any real estate clients who could benefit from a Buy Down on their interest rate? Of course you do - but do you understand how a Buy Down can help them?
A Temporary Buydown is a mortgage loan option that reduces the borrower's interest rate for a specific amount of time.
The main benefit of this type of mortgage is to attract potential homeowners who expect to be making substantially more income in the near future. Another benefit of this type of mortgage is that it often means the buyer ends up paying less for the property than the seller's listed selling price. Exactly how much is saved will depend upon the size and length of the buy down payment.
Typically, there is a cost associated with the buy down that equals the amount of the interest savings. ($3,000 per the above example.) The cost can be paid by the borrower, seller, or lender.
New American Funding offers a 1-0 Buy down at NO COST TO BORROWER!
That saves your clients thousands of dollars the first year. For example:
$300,000 loan amount
3.375% 30 year fixed interest rate year 1: $10,125 total interest paid
4.375% 30 year fixed interest rate Year 2+: $13,125 interest paid/year (APR ... more
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