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/u/memeboi_420
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So l'm buying a new build home and I'm really confused about all these incentives as I am a first time home buyer and the first in my entire family to ever buy a house, I talked with the developer and the mortgage lender and they are all telling me the 2-1 buydown is the better choice and that is the one most people go for but it just seems a little fishy to me
This is the scenario: the preferred lender is offering 2-1 buydown but the price of the house increases by 11,000 from 552,255 to 563,255 . They say that if I choose the 2-1 buydown they have a preferred lender incentive of 14,580 as well (I assume this is to cover the buydown and maybe help with some closing costs if possible)
If I do not do the 2-1 buydown the house will be 552,255 but the lender incentive is only 6,000 and I can use that to help with closing costs
Additionally I can choose to purchase the house at the more expensive price of 563,255 and use the 14,580 to help only with closing costs (the lender said I could possibly by the rate down a bit if any money is left over ).
So is the 2-1 buydown really the best scenario? I can afford the monthly payments without it but would it better to pay less those first 2 years? That's what they're all telling me, but anytime someone is making money off me I'm hesitant to believe they actually have my best interest in mind. I would love to hear what y'all say!
submitted by /u/memeboi_420
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Home price increases if I do a 2-1 buydown. Confused on the process
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This is the scenario: the preferred lender is offering 2-1 buydown but the price of the house increases by 11,000 from 552,255 to 563,255 . They say that if I choose the 2-1 buydown they have a preferred lender incentive of 14,580 as well (I assume this is to cover the buydown and maybe help with some closing costs if possible)
If I do not do the 2-1 buydown the house will be 552,255 but the lender incentive is only 6,000 and I can use that to help with closing costs
Additionally I can choose to purchase the house at the more expensive price of 563,255 and use the 14,580 to help only with closing costs (the lender said I could possibly by the rate down a bit if any money is left over ).
So is the 2-1 buydown really the best scenario? I can afford the monthly payments without it but would it better to pay less those first 2 years? That's what they're all telling me, but anytime someone is making money off me I'm hesitant to believe they actually have my best interest in mind. I would love to hear what y'all say!
submitted by /u/memeboi_420
[link] [comments]
Home price increases if I do a 2-1 buydown. Confused on the process
Continue reading...