Kind Lending, LLC is excited to announce a new option for homebuyers that are searching for the lowest possible interest rates on their next home loan. You can now take advantage of a seller paid rate buydown when buying a home by having the option to save money on your interest rate over the course of the first two years of ownership.
While the option might sound complex or confusing, we are here to tell you that it isn’t. The seller-paid 2-1 Buydown program works like this. During the offer stage, your real estate agent can negotiate with the home’s seller or builder to have them pay the one-time upfront fee to buy down your rate. This is done by buying mortgage interest points, which are simply a form of prepaid interest.
For example, if you qualify for a 30-year fixed rate at 4.25% with no points, but you want a rate of say 3.875%, you can ask your lender how many mortgage points it would take to get the desired rate. Then, the selling agent can correspond with the seller or builder to negotiate the offer. .
Are you wondering if a Seller-Paid 2-1 Buydown makes sense for you, our Kind Ambassadors can answer any questions you may have, click here to find a Kind Lending loan officer near you. They will be able to explain to you how mortgage points work, how much it will cost, and how you have until the breakeven period, so you can decide if it’s the right move for you.