Last week...
I closed with my buyers on a great condo in Boulder and negotiated a savings of $15,000 = $12,500 off their first 2 years of mortgage payments + $2,500 towards their closing costs!
I use this strategy paired with a mortgage lender who is offering a deep discount on refi'ing anytime in the next 3 years to capture even more savings in the future.
The 2/1 Rate Buydown Strategy saves my buyers SOOOO much more money than just negotiating down on price.
If we did the $15,000 off the list price, they would only have saved $2,880 over the first 2 years = a difference of $12,120 in savings!
The rate buydown and amounts all depend on your personal purchase price and downpayment, but I know that it works in this market. This is the strongest buyers market we have seen in years. Don't let the rates scare you away from your dreams of homeownership.
I can help you get your first year's mortgage rate 2% below market.
BUYERS ... The silver lining is that homes are staying longer on the market - rendering the opportunity for me to negotiate on your behalf to get you a lower rate and a discounted refinance option for 3 years.
What a great opportunity for you to actually find the home of your dreams, rather than close on the 4th home you put an offer on.
Know that anyone selling right now is highly motivated; they don’t want their home to sit on the market, and they don’t want to reduce their asking price.
Unlike 2021, YOU now have negotiating power. Whether that’s inspection objections, closing under asking, an adjustable-rate loan, or working with the seller on a creative mortgage solution, there are new opportunities for you to WIN in this market.
That is where negotiating a seller concession for a 2-1 Interest Rate Buydown comes in.
The seller, will pay the amount of interest it would take to make the buyer’s interest rate ///
2% less in the first year
1% less in the second year
Current market rate year 3 and beyond
The GOAL would be to refinance when the rates go down in Year 2.
Check out this example //
Year 1 - monthly payment = $2070.76
Year 2 - monthly payment = $2308.94
Year 3 on - monthly payment = $2558.16
The rates are predicted by experts to go down during in 2025-2026.
Hepp: “We expect mortgage rates to average about 6.6% in 2025, ending at about 6.35% at the end of next year. The decline will be mostly driven by lower Fed Funds rate and some narrowing of mortgage rate spread as we gleam more certainty into the Fed's projected path.”
Let's connect and I can run custom scenarios for you.
I can't wait to help you.
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