Buydowns are the secret for buyers to beat the market

With the release of seller buy downs for potential homebuyers, there is some immediate relief to the higher mortgage rates. Buyers are able to put as little as 3% down on a new home and receive a seller contribution towards the buyers’ closing costs of up to 3% of the loan amount. The average buydown costs approximately 2 pts for the popular 2-1 buy down you see advertised, giving the potential buyer an additional 1% of the loan amount to credit towards closing costs or buying down the initial rate.

The rest of 2022 looks to be a little choppy with markets seesawing up and down weekly on new headlines regarding politics, financial markets, and the federal reserve. Opportunities to lock in rates on the right day is a challenging task for any loan officer in today’s market. The old saying should always stay true, if you like it, lock it. A benefit to working with a mortgage broker is that they can renegotiate a rate on your behalf should the market conditions improve. A mortgage broker has a much better chance to improve your rate with little to no costs to you.