Price Reduction vs Rate Buy Down!?!?!
Rachel Fredrickson
Price Reduction vs Rate Buy Down!?!?!
Are you wanting to buy a house to make your home?
Are you disgusted by the interest rates?
Are you waiting to buy until the interest rates come down?
Are you currently frustrated with the house you are getting for the purchase price you are approved for?
If you find yourself in any of the above scenarios you need to hear this!
A rate buy down may be for you! Talk to your lender and seek guidance from a mortgage professional before making a final decision.
After deciding that you are ready to buy now and finding a house that you want to offer on consider the following...
If you are the only offer being considered, do you ask the seller to:
a) reduce the price so you pay less for the house
b) contribute to a buy down
Take a look are the following scenarios... I kept the down payment at 3% and the interest rate at 7%. Obviously this may not reflect the current rate or the amount required for your down payment. (talk to you lender and I can rerun these tables specific to your situation)
Purchase Price of $600,000
Purchase Price of $500,000
Purchase Price of $400,000
Purchase Price of $300,000
