As a prospective buyer looking at new construction homes- what is the best way to go about asking the builder to buy down our interest rate to go from 6.5% to 5.0%? What kind of success rate are you seeing with this?
Builder interest rate buy down
byu/Spunky_Chihuahua inRealEstate
Posted by Spunky_Chihuahua
2 Comments
Most builders who do this purchase mortgage debt in blocks called forward commitments. They run these as promotional rates. If they don’t have this then see what they can buy it down to. Just ask the loan officer.
That’s a very big buy down if you’re looking for the length of the loan. It can be done, but it’s not cheap. Six points, so six percent of the loan. Bunch of money.
When you talk to the salestron, tell them the kind of incentive you’re looking for. Most builders have some sort of financing incentives going on these days. You’ll have to use their lender. It might make more sense to look at a 5-1 or 7-1 ARM or a 3-2-1 buy down.
It will just be a matter of what their incentive package is.