A % reduction on the list price of a home might not encourage any additional activity on the home but the same money spent might attract lots of buyers if it is applied to an interest rate buy-down. Of the five marketing factors that affect the sale of a home, most agents concentrate on price. While that will certainly cure a lot of what ails a listing, terms for the buyer is another alternative.
I have asked Heather Larson, a loan officer with Chase Home Mortgage, to give examples of how this can work for the benefit of both buyer and seller! Her answer is as follows:
Example 1:
Buyers to do a FHA loan, sellers can give up to 6% or $15,000. Enough funds to do a 3 year buydown. So for the first year the buyers rate would be 3 points below the fixed note rate, 2nd year - 2 points below, 3rd year - 1 point below and then the 4th - 30th year the full fixed rate of 6.625%
Example 2:
Buyers to do a conventional loan, sellers can give up to 3% or $7500.00. Enough funds to do a 2 year buydown.
Questions? Please contact me or Heather Larson.
We will be glad to help in any way we can.
Heather's contact information is:
Heather A Larson
Loan Officer
Chase Home Finance
541-434-3908 direct
541-982-2297 E-fax
541-687-1194 fax
877-681-4040 ext. 208 toll free
Apply on line at:
www.heatheralarson.com