Want a little hack on how to save ~$900 a month on a $850K home?
If you are a homebuyer in today’s Gig Harbor market it’s no secret mortgage rates are higher than 📈 years past. I just had a buyer client utilize a 2-1 buy down and I have to fill you in on this amazing option.
✨Lets start with the basics.. How does a temporary buy-down work? In this scenario, I am explaining your rate is lower by 2% in YEAR 1, and 1% in YEAR 2. Lets use 7.5% as the locked in rate for a buyers new home.
YEAR 1 – Your Interest Rate would be: 5.5%.
YEAR 2 – Your Interest Rate would be: 6.5%.
Then after those 2 years, you go back to the “locked-in” rate (this is not an ARM, this is a fixed rate).
At a $850K Purchase Price, your savings MONTHLY would be:
YEAR 1 – $896 a month
YEAR 2 – $457 a month
Okay, my mind was blown. Is yours?!
It is a temporary solution to lower your housing payment. Then *once* rates do go down, you refinance out of that 7.5% fixed rate you locked in at.
[SAVE this post so you can refer to it when you start home shopping! Or send to a friend who is currently looking for a home who wants a little mortgage hack to save $$] 🥂
Want a great lender to connect with about chatting about a 2-1 buydown? DM and I’ll send over their contact info!💌
If you want to talk through your options to see what’s best for you this fall, reach out! That’s why I’m here.
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