Seller Buy Down Strategy Explained

Here is the comprehensive report on the 2 types of MORTGAGE RATE BUYDOWNS you can get.
I have put this together to help you make sense of the differences between the TEMPORARY and the PERMANENT mortgage rate buydowns.
TL/DR:
Benefits of the PERMANENT BUYDOWN:
- Interest rate improvement lasts the whole duration of the loan term
- Buyers QUALIFY at the lower payment - which can increase the total amount of money a borrower is allowed to access.
- If interest rates end up NOT improving in months/years to come, the Permanent Rate buydown will likely provide more financial benefit.
Benefits of the TEMPORARY BUYDOWN:
- Buyer creates more affordability in the short term. The monthly savings can be 2x or 3x better compared to the Permanent in that temporary time frame.
- The ENTIRE seller credit will go directly to the buyer (as opposed to the lender)
- If interest rates DO end up improving - any remaining money in the temporary subsidy account will be applied to offsetting refinance costs. If the remaining credit EXCEEDS the refinance cost, any remaining money would be applied to principal reduction of the mortgage.
Additional Detail:
- Permanent Buydown Strategy is available for Jumbo, Conforming, FHA, VA, and USDA loans
- Temporary Buydown Strategy is available for Conforming, FHA, VA, and USDA loans - but NOT JUMBO

Reviews

"I can’t believe how many times James has helped me to understand my options for buying a home. I have called him several times over the years and asked him to give me options for home buying and to simplify my loan options. I always hang up feeling very grateful for the time, the patience and the choices he comes up with. James looks at the big picture and explains every detail I need to make an informed decision. He listens and makes the world of home buying not so complicated. I would recommend James Adair to anyone. He is a master communicator. He is kind and very knowledgeable."

tracy livermore

"James and Jessica did a great job, and fit perfect for me as a first time home buyer. James discussed multiple options and helped me find a loan package that balanced both long term wealth with near term affordability. James helped me to understand the mortgage process more thoroughly, and even screenshared the exact interface that he used to lock in rates. To top it off, he attended closing with me at the escrow office and participated real time with questions I had on the final documents. 10/10 - would make a large financial decision with them again"

robert holt

"James has guided me through two home purchases. He connected me with the real estate that he felt would fit the property type I was looking for, which has also been a great success. He and his team make the home buying process a breeze."

n warren