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
4 Reasons Your House Is High on Every Buyer’s Wish List This Season
When the holidays roll around, travel plans, family gatherings, and all the chaos of the season may make you think it’s better to pull your listing off the market or to wait until 2026 to sell your house. But here’s the thing. Waiting could mean missing out on a great window of opportunity. Because while other…
The Housing Market Is Turning a Corner Going into 2026
After several years of high mortgage rates and hesitation from buyers, momentum is quietly building beneath the surface of the housing market. Sellers are reappearing. Buyers are re-engaging. And for the first time in what feels like forever, there’s movement happening again. No, it’s not a surge. But it is a shift – and it’s one that…
Most Experts Are Not Worried About a Recession
Homebuyers are watching the economy closely, and for good reason. Buying a home is one of the biggest purchases most people ever make. And some recession talk in the media has made a lot of would-be buyers second guess their plans. In the latest LendingTree survey, almost 2 in 3 Americans said they think a recession is coming.…
The Top 2 Things Homeowners Need To Know Before Selling
Here’s something you should know before you sell your house. The homeowners who win in today’s market aren’t the ones waiting it out or stepping back. They’re the ones who adapt from the start. A number of homeowners this year didn’t get the outcome they wanted. But it’s not because something’s wrong with the market. It’s…
Liquidity Matters More Than a Paid-Off Mortgage
Most people were raised to believe the ultimate financial goal is a paid-off house. It feels safe, it feels responsible, and it feels like the “right” thing to do. But when you look at it through the Borrow Smart | Repay Smart lens, you realize something important: equity is not the same as liquidity—and liquidity…
More Listings, Easier Credit, and the Strongest November in 3 Years
Inside Lending – Week of November 17, 2025 QUOTE OF THE WEEK “If you want to kill any idea in the world, get a committee working on it.”—Charles Kettering, American inventor, engineer, and businessman NATIONAL MARKET UPDATE The Mortgage Bankers Association (MBA) noted homebuying got off to its strongest November start in three years, as…
Would You Let $80 a Month Hold You Back from Buying a Home?
By Kevin Brierton | Your No Excuse Lender A lot of buyers are stuck in “wait and see” mode right now. They’re watching rates hover a little above 6% and thinking, I’ll buy once they hit the 5s. Because who doesn’t want a better rate? But here’s the thing: that 5.99% number might not save you…
Why Your Home Equity Still Puts You Way Ahead
If you’ve seen headlines about home prices dropping, it’s easy to wonder what that means for the value of your home too. Here’s what you really need to know. Even with small price declines in some markets, data shows you’re likely still way ahead. And that’s thanks to your home equity. The Relationship Between Home Prices and Equity Home…
Are Builders Overbuilding Again? Let’s Look at the Facts.
If it feels like you’re seeing new construction signs pop up everywhere, you’re not wrong. Builders have been busy. And it’s left some people wondering: Are we overbuilding like we did right before the 2008 housing crash? No matter what you may hear in the news, there’s no reason for alarm. In reality, data shows builders aren’t racing ahead, they’re…
The New “Location, Location, Location”: Borrow Smart, Repay Smart™
For decades, real estate success was defined by one phrase — location, location, location.But today, the smartest homeowners and advisors know the game has changed.The new mantra is Borrow Smart, Repay Smart™. True financial success isn’t about where you buy — it’s about how you borrow, manage, and repay. The old “location” used to refer…
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!