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Increase Down Payment or Buy Down Interest Rate
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Looking for purchase financing?
Click here Question IS IT BETTER TO PUT MONEY DOWN OR PAY TO BUY DOWN THE INTEREST RATE? Answer A person can afford a $500 mortgage payment. They find a home with a $100,000 balance. The
payment is $610.00 based on a 6% interest rate. To receive a $500 monthly payment, the interest rate would need to be 4.25%.
o Increase the down payment: § To reach $500 per month the buyer would need to put $18,000 down o Pay to buy down the interest rate: § It will cost $7,500 (7.5% of the loan amount) to buy a 4.25% interest rate. In this case it would cost less to buy down the interest rate. START THE PROCESS – Tell us about your project. This site is maintained Ozell Jackson,
a loan officer with The Legacy Group license# MLO-113222, for the purpose of informing people of real estate financing options.
Industry average interest rates provide by MORTGAGE
New Daily (click here for more information about mortgage rates). This is not an offer to lend at a specific rate. Several factors determine an interest rate. For a personal rate quote,
call (877) 313-5954. This does not constitute a commitment to lend. All
loans subject to full underwriting approval and satisfactory appraisal. Program subject to change without notice. Individual(s)
listed are employees of Legacy Group Lending, Inc., NMLS ID #4455. Affiliated companies: Legacy Group Capital, LLC NMLS #99045,
Legacy Group Escrow, LLC License # 540-EA-40580. For state specific licensing information visit www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/4455. January 2nd, 2012.
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