Home buyers, home sellers and realtors, here is a great tip to help get a home sold, purchased and save money.
Solution: Seller paid discount points allow the buyer to get a lower permanent rate and qualify for more house, and potentially same payment they qualified for months ago.
For example, consider a $700,000 home, 20% down, = $560,000 loan amount. If the seller offers to pay 2 discount points to reduce the rate.
Here are the benefits:
  • Seller pays 2% of $560,000 or $11,200
  • Rate reduces from 6.50% to 6.00%
  • Payment decreases from $3,539.58 to $3,357.48 or saving $182.10 per month
  • Buyer qualifies for more house, instead of temporary buydown or price reduction
  • Seller does NOT need to lower home price
  • Realtor receives higher commission because home price not reduced
This can be a great tool for both fixed and adjustable rate loans.
Rave review on Yelp:
“We were 45 days into the process of placing a new loan on our home. I called Dan Stone and he helped me sort through the different offers and bottom line, the lender we were dealing with lowered their rate by 1/2%, saving us over $400/mo. Thanks for your help, Dan!” -Dave L.
Call 714-310-4162 for more information.