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

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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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