WIN! - WIN! - WIN! BUYERS! SELLERS! AGENTS!

By
Real Estate Agent with Keller Williams Realty of Southwest Missouri

WIN! - WIN! - WIN!  BUYERS! SELLERS! AGENTS!

Raining Money

Part 1:  Seller Wins!!

Price Reduction vs. Interest Rate Buy Down

A seller can save the buyer thousands of $$$ over the life of the loan with an interest rate buy down instead of just a few thousand dollars with a one time price reduction.

For as little as 1% of the loan amount the seller can buy down the interest rate 1/2%.  On a $100,000 loan amount, the 1/2% rate reduction can save the buyer $30 per month. 

With a price reduction at the higher interest it would take approximately $6,000 reduction to save the buyer the same $30 per month.

The seller wins by putting an extra $5000 in his pocket and still saving the buyer $30 per month.

 

Part 2:  Buyer Wins!!

Price Reduction vs. Interest Rate Buy Down

The buyer can save money on the monthly payment thereby possibly qualifying for a higher priced home because of the savings.  The seller may still have room to help with some closing costs because of spending less for the interest rate buy down.

The buyer has a fixed rate loan for the life of the loan at a below market rate.  If the loan is an FHA or VA loan then it could be assumable to a new buyer at the time of sale.

 

Part 3:  Agent Wins!!

Obviously the agent wins because of helping a seller get more money for his home and the buyer getting a more affordable loan.  Talk about providing your own stimulus program!!  So AGENTS--GET ON THE PHONE!!!

According to the evening news, mortgage rates are at a 40 year low.  So we have plenty to tell buyers and sellers about.

WHAT A WINDOW OF OPPORTUNITY!!

 

 

 

 

 

                  

 

 

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Rainer
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Alan Bruzee
Long & Foster Real Estate, Inc. - Rockville, MD

The new rates make everyone want to refinance - even if they did it recently.

Sep 02, 2010 02:19 PM #1
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Barbara Calwhite

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