Rate Buydown

Get Informed. Shop. Save With a full shift in power from a seller's market to a buyer's market, both sellers and buyers need to reevaluate the best approach to a transaction. The examples below illustrate how a simple seller credit towards the buyer's Interest Rate can produce significant monthly savings for the buyer. Normal Price Reduction $537,000 20% $429,600 7/1 IO Arm 6.625% IO $3,021.75 Rate Buydown $552,000 20% $441,600 7/1 IO Arm 5.875% IO $2,812.00 Sales Price Down Payment % Loan Amount Program Rate Term Payment Income to Qualify Monthly Savings $552,000 20% $441,600 7/1 IO Arm 6.625% IO $3,088.00 $7,720.00 $7,554.38 $66.25 Ken Caiani Owner 303-830-1151 www.informmortgage.com ken@informmortgage.com Inform Mortgage 1554 S. Downing St. Denver · CO · 80210 $7,030.00 $276.00 In this example we used 2.125 in points or $15,000 to buy down the interest rate from 6.625% to 5.875% resulting in a net savings of $276.00 per month. Also, the points are a t ax deduction in the year the property is purchased for the buyer. Please consult your CPA for specific information. This example is to show you the power of reducing Rate versus Price. Let’s meet and discuss how this strategy can help you finance or sell the home of your dreams! EQUAL HOUSING LENDER State and local laws prohibit discrimination on other bases, which might include sexual orientation, age, marital status, veteran status, income source and others. All such discrimination violates the rules of this site. Ads must not include any discriminatory statement or image.