Is a 2-1 Buy down right for you? It just might be. Say you want to save on moving expenses that you’ll incur. or need a little bit of extra cash the first two years because you want to paint the kitchen cabinets.
Here is a scenario:
$450,000 home
20% down
Rates at 7%
Payment first year at 5% = $1,932.56
Payment second year at 6% = $2,158.38
Payment for remainder of loan at 7% = $2,395.05
Payment second year at 6% = $2,158.38
Payment for remainder of loan at 7% = $2,395.05
This isn’t factoring in taxes and other fees, but you get the idea. That’s a lot of money to save off your monthly payment. I don’t know about you but if I can get this deal I would!
Find an agent who knows about these types of loans! I would love to be that guy.
