Creative 2-1 Buydown To Get A Much Lower Fixed Mortgage Rate!
If you’re selling a house right now that more houses have hit the market, so are you looking for a strategy to make your listing stand out?
How about if you offered the buyer a 30 year fixed interest rate in the 3% range? I’m not joking right now.
If you are looking at buying a home that rates are solidly in the five percents right now in a 30 year fixed. What I’m talking about is offering the buyer what’s called a 2-1 buydown.
What this is to program where the buyer can get an interest rate that’s 2% lower than the market rate for the first year, 1% lower than the market rate for the second year. Then they go up to the full rate the third year. This is a fixed rate loan, it’s the same type of loan that you would get with a traditional mortgage. It’s just that for the first two years the rate is bought down, it’s not as expensive as it sounds.
As the seller you’re just covering the difference between that the 2% difference the first year in the interest paid and the 1% difference in the second year, so the numbers aren’t huge as far as the amount of money, it costs you to offer a program like this.
It’s going to make your listing extremely attractive to buyers and it’s something you can take advantage on any conventional loan or FHA loan. So conventional is below $684,250 in the Denver Metro Area, that’s the loan amount. If your listing is anywhere below a million that could apply to buyers in that price range.
Something to consider.
Call me if you’d like some more information on this. It’s a really savvy way to make your listing stand out and to get more offers and more traffic through your door. Once again, my name’s RJ Baxter, Fairway Independent Mortgage, and have a great rest of your day.
RJ Baxter Branch Manager NMLS# 395819 165 S. Union Blvd, Suite 400 Lakewood, CO 80228 Phone/Text: 303-670-0137 eFax: 720-398-3314 Licensed in AL, AR, AZ, CA, CO, FL, IA, ID, IL, MT, NE, TN, TX, WA, and WY
