SELLER BUYDOWNS

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

SELLER BUYDOWNS

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

How it 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.

Want to take advantage of a seller buydown?

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