My New Blog

As a buyer, one of the important bargaining tools you still have in this buyers market, is getting concessions from your seller.

If you're buying a new house, most of us think to ask the builder for upgrades and closing costs.  But how many people think to ask for a rate buy down? 

Fannie and Freddie are still allowing up to 3% of the loan amount in seller concessions.  This 3% can be used any way you want (with the exception of pre-paid costs - which include interest to the date of closing, your house insurance and taxes).  A rate buydown can make a significant difference in your monthly mortgage payments.

For example, today, a 1% buydown could buy your rate down from 5.75% on a 30 year fixed rate mortgage to 5.5% for the same loan.   On a $350,000 loan, this amounts to a savings of $55.24 per month - or $19,886.64 over 30 years!  That is a very substantial savings.

In addition, the $55.24 could help you qualify for a slightly more expensive house than you might otherwise afford. 

Food for thought. 

Please call, or email if you would like to discuss this option and how it might help you.

Warm regards.

Shelby