Written By: Karen Deis
Just over a year ago, we published an article on the little-used financing option called a “temporary buy down”.
It’s true. History does repeat itself. A temporary buy down is a mortgage option created about 15 years ago (during the oil crisis in the early 80’s—doesn’t that sound familiar) where a “stash” of “cash” is created either from contributions from a seller or premium pricing from the wholesale company. The “stash” is used to create a lower monthly payment in the first 2 to 3 years of mortgage. (Hint: 2-1 Buy Down requires about 2.3% of the loan amount to be escrowed.)
It acts like an adjustable rate mortgage, but is really a fixed-rate mortgage. The lower monthly payments are attractive to rate shoppers because that’s what they are looking for in the first place—a lower interest rate, right?
Once you know how temporary buy downs work and how to price them, you will need to learn how to “market and sell” the program because if nobody knows about it—or can understand how it works—you’ll never be able to get to first base.
Home sales are down. Interest rates are rising. Be the first on your block to show everyone how to sell more homes by using this unique mortgage financing option.
Read about the unique names for this mortgage option to set you apart from the crowd.
Learn how to illustrate the benefits of the program to:
- For Sale By Owner Sellers
- Realtors®
- Home Builders
- Home Buyers
Before you start your marketing initiative—the first step is brand the program by creating a unique name!
If you are not a subscriber, click here.
Read More
