Right now, there is less competition for homes. This means sellers are willing to do more to get their homes sold.
Are you looking to sell? Have you considered reducing your listing price to attract more buyers in this market? Rather than reducing your listing price you could offer something better to your buyers – a temporarily reduced interest rate, making their monthly payment more affordable. A buydown is a mortgage loan option in which the seller or builder reduces the homebuyer’s interest rate.
A popular seller’s concession is the 2/1 Buydown. This buydown reduces the buyer’s interest rate by 2% the first year and 1% the second year. In year three, borrowers return to the full note rate. Rather than dropping the price, this is a great concession to the seller that is hoping to get their home sold. The temporary buy-down option costs a lot less to the seller while providing a significant monthly savings to the buyer for the first two years.
That is just the first of a few buydown options that could benefit you as a buyer or seller. Reach out to one of our loan officers today to learn more about how a buydown program could benefit you!
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