A 2-1 buydown is a great way to incentivize buyers and market your client's property without price reductions. This offer can be attractive to buyers who are interested in reducing their monthly mortgage payments, even if it's only temporary.
Before their home sale is closed, your client will be asked to pay a one-time fee to contribute to the concession. The 2-1 buydown gives the buyer a 2% reduction in their effective interest rate the first year and a 1% reduction the second. Your clients fee at closing is the difference between the buyer's reduced payment amounts and their regular mortgage payment.
* APR stands for annual percentage rate. The rate information shown is for illustration purposes only and does not represent what your interest rate would be. All rates are subject to change without notice and may vary depending on location. Speak with your Keller Mortgage loan officer if you have any questions regarding interest rates. ** Monthly payment is principal and iunterest only and does not include taxes and insurance. Taxes and insurance may vary upon property location and are subject to change throughout the life of the loan.
|Years||Effective rate||Monthly payment**||Monthly savings||Yearly savings|
Buyer's savings /Seller's cost at closing: