Offer a Buy Down

Of all the consumer incentives that sellers will offer prospective purchasers, one of the most effective is a buy down of their interest rate.  Usually the investment is far less than a typical price reduction, and yet it can have a dramatic affect on the new buyer’s payment.  Additionally, it enables the seller to yet again differentiate their property.  A mortgage lender can estimate the cost (usually 1 discount point will correspond to a 1/4 or 1/8th drop in interest rate, depending on market conditions).  Be sure to check Regulation Z before advertising finance terms!

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2 Responses to Offer a Buy Down

  1. Brian Smalls says:

    this is incredible insight…thank you for the information!!!!!

  2. Mrs. Henry says:

    Great article!

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