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What if you could go from 5.5% to 4.5% and not have to pay for it?  Sounds good, doesn't it.  In order to get down 1% in mortgage rate, you need to buy 2 points on your mortgage which is equivalent to 2% of your mortgage amount.  What if you got the seller to pay for those 2 points?  You can by asking them in the agreement of sale in the form of a seller assist.  Here is an example below:

A.  Purchase Price-$300k with a $6k Seller Assist.  That means the mortgage amount would be $240k with 20% down.  With a mortgage amount of $240k @ 4.5% interest rate = $1216.04 a month.

B.  Purchase Price-$294k with No Seller Assist.  That means the mortgage amount would be $235,200 with 20% down.  With a mortgage amount of $235,200 @ 5.5% interest rate = $1335.43 a month.

So in scenario A you would be paying $1200 more in the form of down payment and $60 in the difference in transfer tax for a total of $1260.  However, the monthly savings on the mortgage payment is almost $120 a month or $1440/yr.  The conclusion is that is will take you less than a year to make up the difference and you will continue to save almost $1500/yr.  Or instead of saving the money, this program/idea may allow you to buy a more expensive house.

This idea is another reason why you should call me as their are so many different ideas and items to think about when it comes to real estate and I am on the forefront.  I can go over the numbers for your particular situation and help you save money with your purchase.  Please contact me today.