So, you've just taken the plunge and secured a 30-year fixed-rate mortgage. But the thought…
How can you get a lower interest rate in this housing market?
I’d like to talk about the Two-One Buydown. Make sure to read until the end to determine how much money you can save.
For instance, you’re buying an $800,000 house, planning to get an FHA mortgage, and paying 3.5% in a down payment. Remember, the current interest rate is 6.5% on a 30-year fixed mortgage.
Using this fantastic Two-one Buydown program with the seller subsidy, your interest rate will be 4.5% in year one. That will save you $1,000 a month for the first year.
For year two, with a rate of 5.5%, you save $500 a month. Lastly, from year three onwards, it goes into the typical 6.5%, the standard mortgage payment.
In year one, you’re going to save $12,000 in monthly payments. In year two, $6,000 in monthly payments.
Here’s our big announcement. You thought it was fantastic having a 2% rate reduction in the first year and 1% in year two. Well, in the first year, we’re going to have a 3% rate reduction. In the second year, we’ll have a 2% rate reduction, and we’re adding a third year with a 1% rate reduction. That’s right, and we are not just offering a two-one buydown; we are now offering a three-two-one buydown.
To learn more about how to save money on your home, make sure to follow RCG Mortgage on all social media platforms!