Extere Real Estate

🚨 EXTERE’S WEEKLY TIP - BUYERS EDITION🚨

🎯 What is a buydown?

Requesting a buydown, whether temporary or permanent, could result in lower interest rates for homebuyers when they take out a mortgage loan. This is accomplished by buying discount points against the mortgage as part of a buydown, requiring an upfront fee that the seller may be asked to pay.

🎯 Who stands to gain from a buydown?

As previously indicated, buydowns help borrowers lower their interest rates throughout the life of the loan or for the initial years of the loan. Whether temporary or permanent, buydowns can benefit buyers in several ways. One such method allows buyers to use the money they would have paid for the higher interest rate to renovate their property or save for savings during the buydown. The buydown is advantageous to the seller as well because it keeps the asking price of the property from being lowered. It might also enable the seller to get a better price for their home.

Would you like to learn more? Slide into our DMS or get in touch with us via the details provided below ⬇️

>> The Extere Real Estate | Extere Financial Team