The #1 Mortgage Strategy & Solution in a High Rate Environment
By George Thoma, Branch Manager / Broker
(Island Lending Hawaii, LLC | Equal Housing Lender | NMLS 312250)
In a real estate transaction, a temporary buydown can be paid by either the seller or the borrower.If the seller pays for the temporary buydown, it is typically done as a negotiating tactic to make the property more attractive to potential buyers. The seller may offer to pay a fee upfront to lower the borrower's interest rate for a certain period of time, which can result in lower monthly mortgage payments for the borrower. This can be especially appealing to buyers who may not qualify for a traditional mortgage due to their income or credit score.On the other hand, if the borrower pays for the temporary buydown, they are essentially paying an upfront fee in exchange for a lower interest rate for a certain period of time. This can be an attractive option for borrowers who want to lower ...