This is a really helpful concept for today’s market. You’ll want to encourage your clients to consult with their mortgage specialist, but often borrowers can secure a lower interest rate by buying discount points as a one-time fee paid at closing. A buydown can also exist when a seller makes initial payments toward the mortgage to reduce the interest rate, usually in exchange for a higher purchase price. Both routes represent great options to consider if interest rates are, ahem, rapidly rising.
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