Florida Mortgage Trends

HELP BORROWERS LOWER THEIR INTEREST RATE BY UP TO 3% AT THE START OF THEIR LOAN

Sellers can help give buyers extra flexibility with a lower monthly payment by offering them a Temporary Rate Buydown to lower the Buyers interest rate at the start of their loan. It’s a great option for almost any borrower, especially those who:

• Expect an increase in their income in the next few years
• Have excess seller concessions to use and want to take advantage of a low fixed rate
• Are looking to do renovations, make upgrades, or buy furniture for their new home
• Are going from renting to buying and want to ease into their mortgage with a lower payment

Temporary Rate Buydowns are available for:

• Conventional primary and second home purchases
• FHA and VA primary home purchases

1-, 2- and 3-year Temporary Rate Buydown options:

• 3-2-1 buydown: A buydown of 3% in the first year, 2% in the second year, 1% in the third year, then back to the original locked rate in the fourth year for the duration of the term.
• 2-1 buydown: A buydown of 2% in the first year and 1% in the second year, then back to the original locked rate in the third year for the duration of the term.
• 1-1 buydown: A buydown of 1% in the first two years, then back to the original locked rate in the third year for the duration of the term. 
• 1-0 buydown: A buydown of 1% in the first year, then back to the original locked rate in the second year for the duration of the term.

• The borrower must qualify for the full monthly payment (before the buydown rate is applied)
• For the seller-paid option, seller concessions are deposited as a lump sum into a buydown account. A portion of this sum is released each month to reduce the borrower’s monthly payments.

REAL ESTATE AGENTS WILL Love selling more homes & Helping more buyers

• Working with a mortgage broker saves their buyers money. The average homebuyer who worked with an independent mortgage broker (like AmeriBest Mortgage in Florida) in 2021 saved an amazing $9,407.*
• Time-saving tools that can get them to the closing table faster.  AmeriBest is constantly innovating to help you speed up the loan process so the buyers can get into new homes faster.
• Products for more of their homebuyers.  Multiple Buydown options available to borrowers.  For example, Temporary Rate Buydowns (seller paid 3-2-1, 2-1, 1-1 and 1-0 options) can help future buyers receive lower rates and help the home for sale be more attractive as a monthly payment.  

We are getting a lot of calls the Buyers, Sellers & Realtors about this exciting program to curtail the higher interest rates.

By Scott Bray, Branch Mgr, nmls #230075 - AmeriBest Mortgage licensed for Mortgages locate in Florida Nmls #325885  - as of 11.16.22