Attention prospective sellers and buyers shopping for a home!  With the market move that we have seen over the last quarter we are finding that 2/1 and 1/0 Buydown Mortgage options are becoming very popular.  A buydown mortgage allows the home buyers to use prepaid interest from the seller to take advantage of lower rates than the market is currently offering.  In the case of a 2/1 buydown with a 7% market rate the buyers first year interest is at 5% and the second year is at 6%!  The savings paid by the seller sits in an escrow account with the lender and if the buyers were to sell the home or were able to take advantage of a potential refi if rates head back down, that money becomes a principal reduction and goes towards the payoff of the loan.  It helps both the buyers to get into a more comfortable payment and helps the seller to attract more buyers to choose their home with the spike in inventory we are seeing, often in place of a price reduction.  Take advantage of this today to help your listing become sold sooner!

For more information reach out to Matt Helfrich at matt@mintlending.net or Jessica Jones at jessica@mintlending.net

Primary home buydown example

Second home buydown example