Seller Paid Points Buydown.

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Here’s an excellent way to help your Sellers get it sold in a competetive market, and to show your Buyers how to maximize the loan amount they qualify for.

The “Seller Financed Rate Buydown” is back better than ever.

Rather than telling your Sellers they need to drop the price (yet again) try making the property more affordable to potential Buyers.

Offer a “x”% Seller paid Credit to the Buyer to be used as points to reduce the mortgage interest rate. Here’s an example:

Contract price $500,000

Loan amount $400,000

Interest rate with zero points 6.0% giving a payment of $2,398/m.

Interest rate with 3 points 4.75% giving a payment of $2,087/m.

Monthly savings equals $311/m.

Over 5 years this would be $18,660.

Over 30 years this would be $111,960.

By increasing a potential Buyers borrowing power you have made your listing more affordable to a substantial number of Buyers who would not otherwise have been able to qualify to buy it.

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