What if I told you that it may be possible for you to get 4% in this market for a mortgage 30-year fixed mortgage.
Let’s say, 4% or 4.5%; there is a way to do it. That basically would consist of the following example: assume today that the PAR (free) rate is 7% for a 30-year fixed mortgage. Next, you spend some money to buy down to get that interest rate to 6% (so you're spending money on points to get that interest rate from 7% to 6%). In addition to that you do the “2/1 buy down (I explained a little bit about what that 2/1 buy down means and how to do it in a previous video; check that out.)
In this scenario you combine a permanent buy-down with a temporary buy-down. That's how you would be able to get down to 4%. To recap, so if today's rate was 7%, then you buy down to 6% (permanent buy-down), then you do the 2/1 buy-down (temporary buy-down). The interest rate would drop from 7% to 4%. In this scenario, the rate would be a 4% for one year, the second year would be 5%, and then the third year if you don't refinance by then, the rate would be at 6% and would remain at 6% fixed for the rest of the life of the loan.
I hope that helps I'd love to talk to you more about it just give me a call or shoot me an email.
Terry Roberts, USMC Veteran Sr. Mortgage Broker NMLS 397987
E Mortgage Capital
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