Rising interest rates have forced many buyers to reconsider their options while Broomfield home prices remain at record-highs. For some this means they simply can’y afford a home they may have been able to a few months ago. However, this doesn’t mean they have to give up on their home search altogether.
Permanent Interest Rate Buydown
Here are two options: First is a permanent rate buy-down, commonly referred to as buying points. In this situation the buyer, seller, or combination of both pays to lower the interest rate for the life of the loan. This upfront investment can have a great long term impact on a buyers monthly payment.
2-1 Interest Rate Buydown
Second is a 2/1 rate buy-down. This is a short-term 2-year buy-down. In the first year, the interest rate is reduced by 2% and 1% in the second year. After the 2-year period, the interest rate remains the same for the remainder of the loan. The cost for either of these options varies so it’s important to speak with your lender to find out if either is good for you.
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For questions regarding the Broomfield Real Estate Market in general contact:
Realtor® | Real Estate Negotiation Specialist
North Star Team at Compass