When buying a home, borrower's always try to find ways to save. Their first shot is usually asking the seller for a price reduction. Here's a better way;
Example:
(Traditional Sale)
Sales Price $550,000 - 20% Down Payment, $440,000 Loan Amount. 30 Year Fixed Rate at 6.25% = $2,709 payment.
(Price Reduction of $20,000)
Sales Price $530,000 - 20% Down Payment, $424,000 Loan Amount. 30 Year Fixed Rate at 6.25% = $2,610 payment.
(a savings of $99.00 per month)
(Seller Credit of $20,000)
Sales Price $550,000 (with $20k in seller credit toward closing costs) - 20% down payment, $440,000 Loan Amount. 30 Year Fixed Rate at 5.00% (seller bought down rate) = $2,362 payment.
(a savings of $248.00 per month)
for these and other tips on saving money in your next home purchase call on TeamResults. TeamResults@Century21.com or www.teamresults21.com
