How Low Can They Go? Preferred Lenders Offer Buy-downs at New Construction

Thumbnail image for ludacris low.jpg

Thanks to Ludacris for low rate inspiration
Image courtesy of iBlog26

Mortgage rates continue to astound.  They are "lower than your Momma's ever seen it in her lifetime" and as if that weren't Ludacris enough, developers are bringing them down even lower.  

While free parking used to be the developer incentive du jour, many developers are now offering mortgage incentives.

Depending on the percent sold in a building, buyers may have limited
options when it comes to choosing a lender.  Typically, buildings less
than 75% sold (includes units under contract) work with preferred
lenders who have special approval to lend on that project.  

The latest building to hop on the bandwagon is Silver Tower at 303 W
Ohio (listed by Jameson).  Guaranteed Rate are offering a 2 point
buy-down for purchasers at Silver Tower.  (See details and the rate sheet here)  Not a bad deal...

Benefit of a buy-down?  While you may qualify for a high purchase price,
you may not be comfortable with the monthly payment that correlates. 
Some buyers may adjust their search price down so that they don't
overspend.  The buy-down offers a lower payment without an adjustment in
price.  (We can discuss the pros and cons of a buy-down more in depth
another day. I promise!)

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    The Condoist

    Rebecca Thomson is the Vice President of Agent Development at @properties, the largest independent brokerage in Chicagoland. She is responsible for training and business development initiatives for @properties’ 1300 agents. Before coming to @properties, Thomson handled residential sales, luxury leasing, and new construction for an international luxury firm. Thomson’s industry involvement is extensive and in 2013 she served as the President of the award-winning Chicago Women’s Council of REALTORS. She currently serves on the Board of Directors for the Chicago Association of REALTORS, chairs the Illinois YPN, and serves on state and national committees for the Women’s Council of REALTORS. Thomson pens a top real estate blog, The Condoist, for Tribune Media Group’s Chicago Now platform. She also speaks locally and nationally for the Women’s Council of REALTORS and the National Association of REALTORS on topics including leadership, social media, membership strategy, and business development. Outside of real estate, Thomson is dedicated to her community and serves on boards for both the Union League Club of Chicago and Step Up. She also founded Give Back Monday, a group raising funds and awareness for local charities through social media and events. In her spare time, Thomson is an avid reader, a scotch aficionado and a self-proclaimed foodie. Thomson holds a Bachelor of Arts degree in English from the University of Illinois in Urbana Champaign. Her professional recognitions include the National Association of REALTORS “30 Under 30” (2014), Chicago Association of REALTORS President’s Award (2013), Chicago Agent Magazine’s Who’s Who in Chicago Real Estate (2012, 2013), and RE/MAX Vision Rookie of the Year (2006)

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