Interest Rate Buydowns
The buydown can be a tough concept to grasp for sellers and buyers but as interest rates rise, it is becoming an increasingly relevant option. Take the example below – For example if home was initially listed at $425,000. They have reduced their price now to $410,000. The chart shows what the numbers would have been if they decided to offer a buydown instead. This buydown scenario would cost the seller LESS THAN $10K, but would create monthly savings for the buyer that are enough to make someone look twice.
Base Price: $425,000 | Down payment 5%: $21,250 | Loan Amount $403,750
For more details call AravindKCRealtor @ 847-970-1743