Have you heard about the 2-1 buy down to get your interest rates down?

If you have been in the market to buy a home I am sure someone you know mentioned the 2-1 buy down. This is a great program that lenders are offering SELLERS to pay in order for YOU the buyer to get a better Interest Rate. 

There are a few important takeaways:

1.  A 2- 1 buy down is another form of financing that can help lower your interest rate on your new mortgage for the first 2 years.
2. The seller is responsible to pay for the buy down. This will equal about 2.5% of the home value which is less than most sellers assist. We suggest that you ask the seller to handle this buy down in the first stage of your negotiations.
3. Even though the seller is giving you the buy down, that does not mean you can't ask for a seller assist. Based off of your financing you may want to add a seller assist on top of the buydown in order to get both a lower monthly rate and a lower closing cost amount.
4. At or before the 2 year mark you CAN refinance. Which means if you take this program and your initial rate is 7%, year one you would be at a 5% interest rate. When year 2 comes around your rate hikes up to 6%. If the rates have shifted between that time and are currently sitting at 5.2% you would want to refinance your loan so you can lock in that new 5.2% interest rate.

Currently we are seeing more and more homes sitting on the market and expiring because of the Interest Rates. As an expert we realize that this is due to the rising Interest rates. In order for you to get the most out of your buying experience we suggest that right now before Spring Market hits, you should start your buying process. 

In 2020 + 2021 when Interest Rates were at 2.5-3% homes were selling 60,70,80 even 100k over asking price. I don't know about you but I would rather take a small hike in my Interest rate ( which can be refinanced ) than waste my hard earned money on a property that is over priced.