Click Here

REALTOR® Magazine Online: The real estate professional's business support tool.

OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®

Daily Real Estate News  |  November 2, 2006  |   Buydowns Expected to Regain Popularity
Buydowns, in which sellers put money toward a buyer's mortgage payments during the first years of the loan, are expected to regain popularity as the housing market slows.

This arrangement often allows sellers to pay an amount less than what they would have shaved off their asking price. Buyers, in turn, benefit from lower monthly payments in the first few years and a lower interest rate, which rises by a percentage point each year until the buyers take over the entire payment.

If the home is to be the buyer's primary residence and the buyer has a credit score of at least 660, Fannie Mae permits lenders to qualify the loan applicant at the first-year interest rate. Buyers of second homes or investment properties must be qualified at the full rate.

Source: Hartford Courant, Kenneth R. Gosselin (11/02/06)

© Copyright 2006 Information Inc.

Browse all of today's news
E-mail this page to a friend
Give us feedback

Search news
Launch my search
 
Subscribe to news
Subscribe to News
Daily and weekly real estate news, trends, NAR press releases, convention coverage, plus exclusive features and columns.

RSS Feed
Get the Daily Real Estate News delivered straight to your desktop or news aggregator. (New to RSS? Learn the basics here.)
 
 
SHARE YOUR INSIGHTS
How did you sell it?
Tell us how you overcame hurdles to sell a challenging or very unique listing!