SELLER BUYDOWNS

Save tens of thousands on your mortgage with a seller buydown.

SELLER BUYDOWNS

Save tens of thousands on your mortgage with BuyerEdge.

A much better alternative to a price reduction is often a very generous seller-financed interest rate buydown.

ORIGINAL PRICE AT

Current market rate (no points)

$2,500,000

Price

25%

Down

$1,875,000

Loan

3.625%

No points rate

EST. TOTAL PAYMENT

$11,360

ORIGINAL PRICE WITH

3 Point seller-paid buydown

$2,500,000

Price

25%

Down

$1,875,000

Loan

3.625%

No points rate

EST. TOTAL PAYMENT

$10,590

$770 LOWER

REDUCED PRICE AT

Current market rate (no points)

$2,500,000

Price

25%

Down

$1,875,000

Loan

3.625%

No points rate

EST. TOTAL PAYMENT

$10,910

$450 LOWER

How BuyerEdge Works

I will use a $2.5 million listing in our local market as an example, as the agent just reduced the price by $100,000 to $2.4 million.

Today’s “no points” interest rate for a strong borrower purchasing that property for $2.5 million with 25% down would be 3.625%.

But, if the seller credits 3 points to the buyer to buy down the interest rate, the buyer would instead get a 2.875% interest rate.

The 3 point credit would cost the seller $56,250 and the buyer’s monthly payment would end up $770 LOWER than it would be at 3.625% (today’s “no points” rate).

In contrast, if the buyer buys the house for $2.4 million (with no seller credit for a rate buydown) at today’s market rate of 3.625%, his payment would $320 HIGHER than it would be at the higher price with the rate buydown.

JVM’s BuyerEdge Program benefits everyone.

Buyers

  • Lower interest rate
  • Lower monthly payments

Sellers

  • No decrease in list price
  • Fast closings

Agents

  • Get your clients more money
  • Maintain higher commissions

Want to take advantage of JVM’s BuyerEdge Program?

Get in touch with us to learn how.

Get started today.