One of the biggest drawbacks about buying a home today is current interest rates which I just had my lender guy who isn’t a guy Ronda run numbers based on an 20% down, 30-year mortgage with an 800-credit score. As of today, and rates can change every few hours 7.125%
The 2-1 buydown is used to reduce the interest rate for first 24 payments. First 12 payments are 2% (5.125%) lower interest. Next 12 payments are 1% (6.125%) lower interest. Must be used for primary or second home only so no investment properties, you are not locked into a contract. Meaning should you decide to refinance earlier than 24 payments or pay the loan off, the funds left in escrow account will be put towards your principal.
Couple of scenarios: You want to buy a home in The Villages before listing and selling you current home. Using the 2-1 buydown buy the home in The Villages and when the other homes sells either payoff or use some of the proceeds to replace the funds you spend on the 20% down payment. If you have a balance reduce the mortgage balance when refinancing.
Rather than waiting for interest rates to drop buy now before the Real Estate “V” comes into play. Don’t know about the Real Estate “V”? Tomorrow’s article!
Dick Betts, REALTOR®
The Betts Team
LPT Realty
The Villages, Florida
717-860-3107 cell
Dick@DickBetts.com
#realestate #realtor #thevillagesflorida #homesincentralfl #thebettsteam #dickbettsrealtor #dickbetts #thevillages
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