Sellers buying down rates

[people_are_smart]

I was checking out Alder Woods Condos at 1423 Graves Ave, El Cajon. These are condo conversions. The sales office is advertising a $20,000 incentive. Actually, the flyer had $15,000 which was lined out and the greater amount hand written with a pen. These are offered in the 300K range so that would be around 6% or just over, depending on the unit. I was told by the sales kid that that is the limit the lender will allow. They are still advertising 0 down and 0 closing costs. The other interesting part is this final phase is being priced higher than the previous sales from earlier this year. Apparently they are still finding buyers who don’t bother to even research the complex they are considering buying in. Allegedly it is because the pool is closer to these units. Oh yeah, the “preferred” lender you have to use to get all the perks is really a mortgage broker. Seems weird.

I posted a thread on Alder Woods a few weeks ago under a different name. I couldn’t take the ditech.com ads anymore as they are so funny on so many levels. So I had to change it.

[SD Realtor]

HLS I didn’t realize that you could buy down more then a point for A paper stuff. Wowsers…Agreed that the buydowns make sense based on several factors that we don’t need to rehash. I have heard the same ads on the radio. I think it is like equity direct or first equity or someone like that.

SD Realtor

[SD Realtor]

HLS I didn’t realize that you could buy down more then a point for A paper stuff. Wowsers…Agreed that the buydowns make sense based on several factors that we don’t need to rehash. I have heard the same ads on the radio. I think it is like equity direct or first equity or someone like that.

SD Realtor

[SD Realtor]

HLS I didn’t realize that you could buy down more then a point for A paper stuff. Wowsers…Agreed that the buydowns make sense based on several factors that we don’t need to rehash. I have heard the same ads on the radio. I think it is like equity direct or first equity or someone like that.

SD Realtor

[HLS]

There are only several lenders I deal with that are real aggresive in this. Paying 1.00 to save .25 in rate isn’t as simple as saying it’s 4 years to make sense.

A low rate lessens the resale value of the loan on Wall Street, so the larger buy down options are usually only from those who are willing to take their profit up front, and hold the loan.

I usually don’t recommend them if it takes more than a few years to make sense. They aren’t always cheap, BUT it’s usually the only way to max out NRCC (even if they don’t make sense)

Today with a buy down the 30 YR Fixed, Full Am, cost options are
4pts= 5.375%, 4.7pts= 5.25%, 5.4 pts= 5.125%, 6.15pts= 5.00%

I’ll let you decide if they make sense.

[HLS]

There are only several lenders I deal with that are real aggresive in this. Paying 1.00 to save .25 in rate isn’t as simple as saying it’s 4 years to make sense.

A low rate lessens the resale value of the loan on Wall Street, so the larger buy down options are usually only from those who are willing to take their profit up front, and hold the loan.

I usually don’t recommend them if it takes more than a few years to make sense. They aren’t always cheap, BUT it’s usually the only way to max out NRCC (even if they don’t make sense)

Today with a buy down the 30 YR Fixed, Full Am, cost options are
4pts= 5.375%, 4.7pts= 5.25%, 5.4 pts= 5.125%, 6.15pts= 5.00%

I’ll let you decide if they make sense.

[HLS]

There are only several lenders I deal with that are real aggresive in this. Paying 1.00 to save .25 in rate isn’t as simple as saying it’s 4 years to make sense.

A low rate lessens the resale value of the loan on Wall Street, so the larger buy down options are usually only from those who are willing to take their profit up front, and hold the loan.

I usually don’t recommend them if it takes more than a few years to make sense. They aren’t always cheap, BUT it’s usually the only way to max out NRCC (even if they don’t make sense)

Today with a buy down the 30 YR Fixed, Full Am, cost options are
4pts= 5.375%, 4.7pts= 5.25%, 5.4 pts= 5.125%, 6.15pts= 5.00%

I’ll let you decide if they make sense.

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