Seller Buydown Program
Want a better offer on your home?Sell your home faster - at asking price or more - with a seller-paid buydown.
How it Works:
- A 2/1 buydown temporarily reduces the buyer’s mortgage interest rate the first two years of the loan.
- The temporary buydown is paid for by the seller as an incentive to purchase your home.
- The buyer’s monthly mortgage payments will be reduced the first two years of the mortgage, allowing them to pay full price for your home.
Seller-Paid 2/1 Buydown Example:
Loan Amount = $540,000
Reduced Rate for Year 1 = 4.25%
Reduced Rate for Year 2 = 5.25%
APR* = 6.457% APR
30-Year Fixed Rate = 6.25%
Total Seller-Paid COST = $12,136
When Does a Seller-Paid Buydown Make Sense?
- Mortgage rates are trending higher, making affordability more difficult for buyers.
- Home sales are slowing down, resulting in higher competition among sellers.
- The seller wants to attract more buyers without reducing their asking price.
- There’s a potential to increase the seller’s profit with a buydown strategy.
We'll crunch the numbers and help you decide if a seller-paid buydown is right for you!
*Annual Percentage Rate is effective as of 8/5/22 and is for illustrative purposes only. Scenario based on a 20% down payment, primary residential occupancy, 740 FICO® score, and 45% debt-to-income (DTI) ratio. This is not an offer of credit. Scenario listed is for educational purposes only and rates listed are subject to change without notice. Please contact your Loan Officer for specific guidance. Not a commitment to lend. Borrower must meet qualification criteria.
