Seller Paid TEMPORARY Buydowns
This is a follow up to my prior post that touched on Seller Paid PERMANENT Buydowns. The permanent option is great for borrowers that need help in “bumping up” their borrowing power by having the interest rate permanently lowered for the life of the loan. In contrast, you can also leverage the same money from a seller to TEMPORARILY lower the interest rate for 1, 2 or even 3 years. The most common and cost effective one is the 2/1 Buydown. Check out the video below for some details and contact me with any questions!
*NOTE – the money used to pay for this buydown is held in escrow during the temporary period. If interest rates drop, the borrower can refinance and may get refunded a prorated portion of that and reduce the costs of the refinance!
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