Why Buy-Down Programs are a Great Option for Homebuyers and Sellers

Are you considering buying or selling a home in today’s market?

If so, you may be wondering how to navigate the current landscape of rising interest rates and low inventory.

Well, I have some good news for you: there’s a little-known strategy that could save you thousands of dollars on your home purchase or sale.

It’s called a “Temporary Rate Buy-Down” program, and it’s a win-win for both buyers and sellers.

Essentially, a temporary buy-down program allows a buyer to get a lower interest rate on their mortgage for the first few years of the loan. This translates into a lower monthly payment, which can make buying a home more affordable for those who may be on the fence.

But what about sellers?

How does a temporary buy-down program benefit them?

Instead of lowering the price of their home, a seller can offer a credit to the buyer to help them buy down their interest rate. This makes the home more attractive to potential buyers and can help it sell faster.

Now, I know what you may be thinking: “Wait, didn’t we just go through a housing crisis caused by adjustable-rate mortgages?”

And you’re right, but the temporary buy-down programs of today are different. Often a seller agrees to prepay the interest rate for X number of years. So you’re getting a “fixed rate” mortgage at the current interest rate (not a rate that will fluctuate in the future). The seller is just agreeing to buy-down the rate for a set period of time.

So why should you consider a buy-down program? For buyers, it can help you get into a home for a lower monthly payment, giving you time to let the market settle in before refinancing at a lower rate. And for sellers, it can help you sell your home faster by making it more attractive to potential buyers.

In today’s market, where interest rates are rising and inventory is low, a buy-down program could be the key to your success. If you have any questions about how it works or how to leverage it, don’t hesitate to reach out to me. Let’s make your home buying or selling experience a success!

———- Forwarded message ———
From: Marie-Lynn Dunn <>
Date: Mon, Mar 6, 2023 at 12:06 PM
Subject: Did you know there are 4 Temp Rate Buydown Options?!
To: Heather Seitz <>

I’ll be honest… I was not on a temporary rate buydown train last summer and fall. Mostly because I didn’t feel like sellers were realistic enough in pricing their home to allow for a concession. At that time, sellers were still thinking that they could get top dollar, with multiple offers, and not having to concede on their price or pay for closing costs. The market is very different now. Sellers are desperate to sell in some cases and are looking for every opportunity to provide incentives to buyers.

If you don’t want know what a temporary by down is, please watch this short video where I explain briefly what it is.

At CrossCountry Mortgage, we offer a 3-2-1 buydown, a 2-1 buydown, a 1-1 buydown, and a 1-0 buydown. This gives sellers more options to incentivize buyers and it gives buyers more affordable monthly payments in the first few years of owning a home. Rather than a seller lowering the price 10%, why not offer a 6% seller concession to fund a 3-2-1 buydown AND cover closing costs for the buyer!! That saves the seller a total of 4% on price (and also your commission!) That is a win-win for both parties!

I have these conversations with buyers and their agents I send them the attached worksheet with their scenario so they can determine what would be the best option for the offer they are considering. If you would like me to explain a Temporary Rate Buydown further to you or your clients, please give my office a call at 512-489-6965 or schedule a quick 15 min call on my calendar here. I welcome the chance to share with you!

*Need to book an appointment with me? Schedule here!

*Calculate mortgage payments on the go with my FREE Mortgage Calculator App!

Locking in Your Rate:Locking interest rates is your responsibility. Locking is done at your discretion and all rates/fees quoted are valid only at the time presented. Rates are subject to change at any time and subject to the market fluctuations. Home Mortgage Interest rates can be highly volatile and are not predictable. Lock in request will only be accepted during business hours until 5:00 pm CST.

Marie-Lynn Dunn
Originating Branch Manager
M 203.500.5609
D 512.489.6965
F 512.368.9056
W TexasLoanApp.com

CrossCountry Mortgage, LLC
13279 Pond Springs Rd., Suite 5
Austin, TX 78729
Personal NMLS1119271 Branch NMLS2269689
Company NMLS3029

NOTICE: The information contained in this communication is confidential and/or legally privileged. It is intended only for the use of the individual or entity named above. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of this information is strictly prohibited. If you have received this electronic mail transmission in error, please destroy the original communication, delete it from your system without copying or forwarding it, and notify us by telephone at 440-845-3700.

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