Hussbus Bus Stop: Temporary Rate Buydown
Nick Hussey of The Hussey Team is here to talk about temporary rate buydowns and how they can help you still get your dream home today!
• Mortgage interest rates are higher than they have been in the last few years.
• To help buyers afford mortgage payments, lenders are offering incentive programs like temporary rate buydowns. This is not the same thing as buying down your rate using points or fees. These rate buydowns decrease your rate for 1 or 2 years.
• Temporary rate buydowns can also be offered by SELLERS to potentially help sell their home more quickly.
• In the video, Nick provides an example of a 2-1 buydown for a $400,000 loan. The interest rate is reduced by 2% for the first year and 1% for the second year. The borrower saves more then $9,000 in interest over the first 2 years of the loan. This amount MUST come from a seller assist.
• Nick also provides an example of a 1-0 buydown for the same $400,000 loan. The interest rate is reduced by 1% for the first year. The borrower saves more than $3,000 in interest over the first year of the loan. Again, this amount must from from a seller assist.
• Seller assists are becoming more and more popular again, as the housing market becomes more balanced.
• Keep in mind: this program does NOT help buyers qualify for a higher loan amount; lenders still qualify borrowers based on the regular interest amount.
If you have questions for us, hit us up on the Hussey Hotline at (484) 353-6141! (CALL OR TEXT!)