INTEREST RATES

by Maria Del "Carmen" Sanchez

As you know, mortgage interest rates are on the minds of all buyers and sellers right now.

With the average cost of a home, even small interest rate changes can significantly affect the monthly mortgage payment and your client's ability to afford a home.

That's why we're excited to announce our expanded reduction program! With 1st Florida Mortgage's Step Up Program, Buybacks Just Got Better!

Whether your are buying or selling a home, our new Lender-Financed Buydown may be the solution they need to close the deal!

So how does it work? Buybacks are a financing tool that allows well-qualified borrowers, who are qualified at the full rate of the Note,

To reduce their interest rate and monthly payment during the first few years of the mortgage. A lump sum of money is deposited in advance into an escrow account and temporarily lowers the interest rate and monthly mortgage payment for a specified period of time.

The monthly mortgage payment is made with the down payment funds in the escrow account along with the borrower's monthly payment and increases annually until the end of the down payment period.

The borrower has the option of a 3-year, 2-year, or 1-year reduction period. After the initial reduction is complete, the interest rate remains fixed for the life of the loan.

This is a good option over an ARM because the rate is not subject to market fluctuations and it provides the opportunity to save between 1% and 3% for up to 3 years.

Traditionally, funds for a repurchase escrow account have been paid by either the buyer or the seller through seller concessions.

In a market that tends to favor sellers and where demand for homes is strong, it can be challenging for a buyer to receive concessions from the seller.

However, with the reduction financed by our lender, the cost of the reduction is built into the price.

This means no concessions from the seller and no money out of pocket for the buyer at closing!

To learn more about how an initial purchase can help your client transition from home hunter to homeowner,

contact me today!

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Maria Del "Carmen" Sanchez

Agent | License ID: SL3369295

+1(915) 309-6418