Financing Strategies in Today’s Volatile Market

Sitting on the Sidelines Due to Rising Interest Rates?

As interest rates hit a peak in this volatile market, buyer’s are looking for creative strategies.

Buying Points versus Offering Less

One such strategy is buying down interest rates in lieu of a reduced purchase price. A seller concession applied to buy down the interest rate is more impactful on a monthly payment as compared to a reduction in the purchase price.

See table below for 3 loan scenarios:

1. Standard asking price with no seller concessions or rate buy downs.
2. If a seller credit is agreed upon, what the estimated interest rate would be with the rate buy down via discount points and how that payment looks.
3. A below asking offer, with a standard rate and no concession or rate buy downs.

If you are thinking about buying or selling, we are here to help!