Saturday Strategy
Mortgage FAQ's, did you knows and much more...
Is it better to reduce the price or apply money to a Temporary Seller Buydown option?
With rates and home prices at all time highs, I wanted to provide you with a clear understanding of the 2-1 Temporary Seller Buydown option, which can be a beneficial arrangement for both buyers and sellers in a real estate transaction.
In a 2-1 Temporary Seller Buydown, the seller agrees to contribute a certain amount of money upfront to reduce the interest rate on the buyer's mortgage loan for the first two years of the loan term. This results in lower monthly mortgage payments for the buyer during the initial years of homeownership.
Here's how it works:
- Seller Contribution: The seller allocates funds to the buyer's mortgage lender. This money is used to cover the interest rate reduction for the first two years.
- Interest Rate Reduction: The buyer's interest rate is temporarily "bought down" for the initial two years. This means the buyer pays a lower interest rate than the standard market rate during this period.
- Monthly Savings: As a result of the reduced interest rate, the buyer enjoys lower monthly mortgage payments during the first two years. This can make homeownership more affordable and manageable, especially during the early stages.
- Long-Term Benefits: While the seller buydown helps the buyer save money initially, it's important to note that the interest rate will gradually increase to the original market rate after the initial two-year period.
This arrangement can make a property more attractive to potential buyers, as it provides immediate financial relief during the crucial initial years of homeownership. For sellers, it can help expedite the sale of the property by offering a more competitive financing option.
P.S. Can I count on you to call us when any friends, family or coworkers are looking to buy, sell or refinance a home? We'd love to help! You can just text/call me at 480.553.8770. * Did you know we can finance in 45 states?
Here is an example of clear mortgage plan for a 2-1 Temporary Seller Buydown option
Rule of 72: The Fastest Way to Measure the Power of Time and Interest
By Kevin Brierton | Your No Excuse Lender | Branch Manager NMLS 599873 | CMPS | CLA Have you ever wondered how long it takes for your money to double?The answer might be simpler—and more powerful—than you think. In the Borrow Smart and Certified Liability Advisor programs, we teach that money is always moving. It’s…
How DSCR Loans Are Helping Investors Buy More Properties Without Tax Returns
By Kevin Brierton NMLS 599873 | Your No Excuse Lender | BM | CMPS | CLA If you’re an investor or thinking about becoming one, you’ve probably heard the term DSCR loan floating around. It’s one of the most powerful loan programs available today — especially if you want to expand your real estate portfolio…
Should I Pay Off My Mortgage?
It’s one of the most common questions I hear:“Should I pay off my mortgage early?” On the surface, it sounds simple — who wouldn’t want to live debt-free? But as a Certified Liability Advisor, I’ve learned that the better question is:“Will paying off my mortgage make me wealthier… or just make me feel safer?” Let’s…
The $280 Shift in Affordability Every Homebuyer Should Know
If you paused your plans to move because of high rates or prices, it may finally be time to take a second look at your numbers. Affordability is improving in 39 of the top 50 markets, according to First American. And that’s the 5th straight month where buying a home has started to get a little bit easier. Let’s break this down…
2026 Housing Market Outlook
After a couple of years where the housing market felt stuck in neutral, 2026 may be the year things shift back into gear. Expert forecasts show more people are expected to move – and that could open the door for you to do the same. More Homes Will Sell With all of the affordability challenges at…
Why More Buyers Are Turning to New Construction This Year
There’s a trend taking hold in real estate right now: more buyers are choosing newly built homes. And it’s not just about getting the latest technology or modern floorplans. It’s because they may be able to get a better deal. Builders are offering serious incentives today, and people are jumping on them. In fact, new home sales just…
Mortgage Rates Hit a 1-Year Low – Here’s What It Means for Buyers and Sellers
Your No Excuse Lender – Clear Communication, Great Follow-Up & On-Time Closings = No Excuses | Top 1% in US | Husband | Father | CLA | CMPS | Luminate Bank | NMLS 599873 NMLS 1281698 | Member FDIC October 13, 2025 Inside Lending For the week of OCTOBER 13, 2025 QUOTE OF THE WEEK “Money…
Don’t Let Unrealistic Pricing Cost You Your Move
These days, you’re going to want to get your price right when you get ready to sell your house. Honestly, it’s more important than ever. Why? While you may want to list high just to see what happens, that’s a plan that can easily backfire, and it’s going to cost you in today’s market. And the risk…
Why Home Prices Aren’t Actually Flat
If you’ve been following real estate news lately, you’ve probably seen headlines saying home prices are flat. And at first glance, that sounds simple enough. But here’s the thing. The reality isn’t quite that straightforward. In most places, prices aren’t flat at all. What the Data Really Shows While we’ve definitely seen prices moderate from the rapid…
Why Experts Say Mortgage Rates Should Ease Over the Next Year
You want mortgage rates to fall – and they’ve started to. But is it going to last? And how low will they go? Experts say there’s room for rates to come down even more over the next year. And one of the leading indicators to watch is the 10-year treasury yield. Here’s why. The Link…
P.S. Can I count on you to contact me if you hear that a friend, family or coworker is looking to buy, sell or refinance? Call/Text 480.553.8770 - We'd be honored to help them too!