The Solution To Buying a Home in This Market: 2-1 Buydowns
Here’s how 2-1 buydowns can help get buyers into homes in this market.
Look: We all know interest rates are up, and as a result, many buyers are understandably a little worried about purchasing a home in this market. If you’re in this boat, don’t worry; we have you covered.
There is a lending product called 2-1 buydown that could be the solution to your problems. Here’s how it works. First, your interest rate will be 2% lower than normal for the first year of your loan. Then, your interest rate will be 1% lower for the second year of your loan. After that, your rate will return to normal. Lenders typically charge an upfront fee for this product, but we’ve had success negotiating for your seller to help pay that cost for you.
This is a great way to ease into your rate and start with a lower payment. If you’re selling, this is a fantastic incentive to offer buyers. Plus, experts predict interest rates will be lower in two years, which means you can purchase now and refinance once your rate gets higher.
If you have questions about this topic or anything else in this market, please call or email. We look forward to hearing from you!