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
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.
Since its formation in 2006, JVM Lending has been committed to reinventing the mortgage lending model in order to provide outstanding service, low rates, and some of the fastest closing times in the industry.