• ¡Welcome to Lending Network!
  • America's Fastest Growing Loan Scenario Online Forum
Hello There, Guest! Login RegisterLogin with Google+


Welcome to Lending Network! America's Number One Loan Scenario Help Center For The Public Join Our Lending Network Online Community Forum And Ask Your Loan Case Scenarios To Our Moderators & Real Estate Professionals.
It takes seconds to become a member. Lending Network was created and launched as a mortgage, real estate, and credit information center for the general public to utilize it as a loan scenario help desk online community forum.

Thread Rating:
  • 1 Vote(s) - 5 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Buydown the rate
#1
When does a client need to buy down the interest rate?
Buydown cost is included in the closing cost, isn't it?
 
Reply
#2
A mortgage borrower can buy down the rate to get a better interest rate. Cases where mortgage loan borrowers need to buy down the rate is when their front end debt to income ratios are too high. You can use sellers concessions to buy down the rate. Here is an article on buying down the rate for a better lower mortgage rate.

http://gustancho.com/buying-mortgage-rat...ng-points/

 
Reply
#3
Kay,

Here is an older mortgage blog post on interest rate buydowns that I have written and published it on http://www.gustancho.com Mortgage and Real Estate Forum that may be of help in helping you better understand the concept of paying points to reduce your mortgage rates:

http://gustancho.com/interest-rate-buydowns/

 
Reply
  


Forum Jump:


Browsing: 1 Guest(s)