Pre-Approval Wizard
* All scenarios shown are estimates only. Please obtain final numbers prior to closing.
3-2-1 Buydown
Selling Advantages Guide
The ultimate advantage for homeowners wanting to sell or list their properties
Advantages of selling with a 3-2-1 buydown
• Seller may be able to sell for a higher price if they include the buydown concession.
• Seller can reduce the cost of the points from the sales price to lower their capital gains tax if required.*
• Buyer gets a lower rate and lower monthly payments without paying the upfront cost of points.
• Buyer can offer even more for the home (as long as the appraisal supports the value).
* Always consult a tax professional.
Overall Selling Advantages for a 3-2-1 Buydown
A 3-2-1 buydown mortgage
can help sellers in a tough market by making their property more appealing and likely to sell quickly, which is good for them when it’s hard to sell.
What does it cost the seller?
Typically, around 3.5% – 4.5% of the sales price for a property with a 10% – 20% down payment from the buyer.
3-2-1 Buydown
• Attract more buyers: Offering a 3-2-1 buydown can attract more buyers to a property by making it more affordable at first. This can lead to more interest and faster sales.
• Competitive Edge: In a market with many homes for sale, a 3-2-1 buydown mortgage gives sellers an advantage. It shows buyers that the seller is eager to sell and work with them, making the property more attractive.
• Faster Sale: Lower initial interest rates can attract more buyers, especially in a slow market. This can lead to a faster sale and less time and cost spent on keeping the property on the market.
