Luxe Austin Homes - Buydown

"Mortgage Buydowns Are Making a Comeback"

Posted by Grossman & Jones Group on December 19th, 2022

Realtor.com writes, "Carley Chase found her dream home in Chandler, Ariz., this summer: a three-bedroom ranch, close to work, with a pool and a backyard lined with palm trees.

Soaring interest rates threatened to put it out of reach. Her lender suggested a temporary buydown that would lower her mortgage payment for the first three years.

“I don’t think I would have been able to afford it without the buydown,” Ms. Chase said.

Rising borrowing costs have dramatically increased the cost of buying a home this year, reviving interest in mortgage products like temporary buydowns that fell out of favor after the 2008 financial crisis.

Temporary buydowns offer steep but short-term savings on mortgage rates. Borrowers get a much lower rate in the…

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Real estate trend helping soften the blow of rising interest rates

Posted by Grossman & Jones Group on July 7th, 2022

Austin home buyers and sellers are getting creative to lessen the blow of rising interest rates. Realtors report more people are exploring temporary interest rate buydowns.

The temporary rate buydowns happening right now involve sellers taking some of their profit from the sale and putting it toward helping the buyer make payments at a lower interest rate. It's usually a benefit that sellers only agree to for a couple of years, but it is helping homes sell while rates are high.

For the first time in years the Austin Board of Realtors says the area housing market is stabilizing—something that will help some buyers get back in the game.

"They can be a little bit more relaxed. They can actually have a shot at making one of their offers stick.…

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