10/13/2022
So, this house in Katy is listed for sale at $679,900. The mortgage payment would be about $3,437/month. Here’s an idea: rather than trying to convince the seller to accept a lower price, negotiate a “rate buy down” instead. What this means is the seller helps pay some money up front to lower the interest rate on the buyer's mortgage. Of course, every situation is different, but it can shave hundreds of dollars a month off of your monthly payment.
Let’s say the seller agreed, in theory, to a $16,000 price reduction. Instead of $679,900, they’re willing to accept $663,900. If you use that $16,000 to “buy down the rate” instead of the purchase price, it could lower your mortgage payment by almost $263 a month. That’s huge!
Let me know if you guys have any questions. I'd be happy to refer you to some amazing mortgage lenders who can help you with the specifics!
-Natasha