How will this benefit me? Any negative repercussions?
2006-10-01 23:27:40 · 2 answers · asked by cmego357 1 in Business & Finance ➔ Renting & Real Estate
It sounds like the seller is offering to pay a grand or so at settlement to get the buyer a lower interest rate. You won't get the deduction on it, but then again, you won't have paid it. Sounds like a winner.
I think it's a 'buy down' - that might help you google more info on it.
2006-10-01 23:38:50 · answer #1 · answered by cassandra 6 · 0⤊ 0⤋
Your mortage starts 2% lower than it's final rate. Example 4.5% 2-1 buydown would move to 5.5% in year two, and 6.5% final rate for years 3-30. There is nothing wrong with these, but in the marketplace they cost you more than taking a 6.5% rate to start with. If the seller is willing to do this, maybe you can negotiate a great deal. If you need more info you can contact me via: http://www.slarson.com/contact or steve@slarson.com
Regards
Steve
2006-10-03 06:59:34 · answer #2 · answered by Anonymous · 0⤊ 0⤋