Saving with a 2-1 Buydown Program for Buyers
Thank you for reading my blog; as a Realtor and now Broker-Owner, information is key to opening the door for home buyers, especially first-time homebuyers. Having access to loan products will be most helpful to their intent and getting into homeownership.
From California to Florida, Edwin Bautista and I have joined forces to help in that transition. Edwin is a lender that can provide a loan to most states. However, he can help you move from California to Florida, as he has made that move himself, and he commutes from both states. He can get you pre-approved and get you a connection with an agent to get your house hunt started, and I can help you sell your home for the highest price with the best-qualified buyers.
San Fran Mary Ann Cadorna – 628-888-9078 – MaryAnn@SincerityRealty.com
Sincerely yours,
Mary Ann
628-888-9078
BLOG POST Contribution by Edwin Bautista
“Here is a great new program that allows first time homebuyers to start two percent lower on their mortgage rate on the first year and one percent lower on the second year. The program works by getting seller concessions to cover the cost for the rate buydown for the program. For example, if your qualifying rate is 7% you would start at 5% on your first year and the second year you rate would be at 6%. The anticipated goal is that rates should eased back down within 12-24 months, and we would refinance you into a lower rate. The program allows you to save each month for those next 2 years, all while having lower payments. If the 2 years comes up and we haven’t refinanced you, then you go back to your fixed qualified rate of 7%. Down payments can be as low as 3% with qualifying factors.”
Below is a breakdown example of what it looks like.
These estimates are based on today’s market rates.
- 2-1 Buy-down program
- Floor Rate at 5.00%- cannot go below Qual Rate of 7.00% when choosing buydown rate since floor is 5.00%
- 7% minus 2% equals 5.00%, which is the floor rate.
- Purchase Price $550,000
- 20% down at $110,000
- Loan Amount $440,000
- Qual Rate 7.00% zero points
- YR 1 Principal and interest payment at 5% = $2,362
- YR 2 Principal and interest payment at 6% = $2,638
- YR 3 Principal and interest payment at 7% = $2,927
- Seller concession required for this scenario $10,255.
I can offer credit towards closing costs with a higher rate to help with fees.
Please let me know if you have any questions.
Thank you,
Edwin Baptista (Hablo Español)
Loan Officer
Direct 510.381.3820 Fax 510-217-6983
NMLS-678489 FL-NMLS – LO80740 Co.NMLS 1734144
Coast Capital a Division of Private Money Bancorp, Inc.
2190 Meridian Park Blvd., Suite E, Concord, CA 94520
Email: ebaptista@coastca.com I www.coastca.com
Online application: APPLY NOW
