How Does a 2-1 Buydown Mortgage Work?

Download as
 PPT
Click to download this Presentation as video.  Video
Presentation Description 

Michael Ciavarini a Certified Mortgage Planner shows you how a 2-1  More

Views: 38
Like it  ( Likes) Dislike it  ( Dislikes)
Added: September 13, 2009 This Presentation is Public 
Presentation Category : Education All Rights Reserved
Presentation Transcript

One on one :One on one Michael Ciavarini with The 2-1 BuyDown Mortgage Vice President | Certified Mortgage Planner GuaranteedRate | 311 Summer St., Boston, MA 3% 4% 5%


Your Host: Michael Ciavarini :Your Host: Michael Ciavarini A T.E.A.M. Certified Mortgage Planner V.P. of Mortgage Lending, Guaranteed Rate http://www.GuaranteedRate.com/mikec Host of “On The Money” radio personality, Every Wednesday 6 to 7 PM on WBNW 1120 AM.


2-1 Buydown Mortgage :2-1 Buydown Mortgage What is it? A 30 Year Fixed Mortgage It is NOT an adjustable rate mortgage In Year 1 it is 2% below your closed rate In Year 2 it is 1% below your closed rate In Years 3-30 it is at your closed rate Prepaid Interest is due at closing That is paid by the seller


Seller Concession :Seller Concession Did you know that on Fannie, Freddie, and FHA loans a seller can contribute up to 6% of the sale price towards your closing costs?


How It Works :How It Works * Rates as of 09/12/2009


Slide 6:On a sale price of $450,000 you would have to offer $353,000, some $97,000 less to yield the same monthly payment.


Who is this Mortgage For? :Who is this Mortgage For? 1st time home buyers. Anyone who’s term of ownership is short. Anyone who’s income starts low then grows fast. Needs money for furniture, drapes etc… Sellers to entice buyers with a low rate


How to get the Lowest Rate :How to get the Lowest Rate Utilize the 2-1 buydown option. Negotiate a seller concession. Send the savings to SAVINGS.


Schedule a FREE Consultation :Schedule a FREE Consultation Michael Ciavarini 311 Summer Street, 2nd Floor Boston MA 02210 Office (617) 532-6979 Fax (617) 830-0403 Cell (508) 662-5381 mikec@guaranteedrate.com http://www.guaranteedrate.com/mikec Facebook  Twitter [BOSMTGPLANNER] Follow me on…