How Concessions and Buydowns Can Help You Buy a Home

[Elizabeth_FICO]

Hello everyone! If there's a new blog article that I think you guys might like I plan on posting it in the Forums.

This week's article is: How Concessions and Buydowns Can Help You Buy a Home

Let me know what you think about the article.

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[ShanetheMortgageMan]

Just an FYI, sales concessions/seller credits can rarely be used for moving costs, repairs, decorations, or to purchase furniture or appliances.  Whenever one of our clients will be asking for those types of concessions we let the real estate agent know that they can only ask for credits towards closing costs, or if those have already been maxed out then we suggest a reduction in the sales price.

Regarding temporary rate buydowns, those might be of interest if you know your income will substantially increase after a year or two, otherwise it's just a lower payment for a short period of time with a payment increase coming down the road.  If you are interested in buying down your rate, instead of a temporary 2/1, etc. buy down I recommend looking into a permanent rate buy down.  The rate won't be as low, but it'll be for the life of the loan rather than just 2-3 years.