INTEREST RATE BUY DOWN

Interest rate buy down refers to a strategy where a borrower pays an additional upfront fee to lower the interest rate on a home loan. By doing so, the borrower can reduce their monthly mortgage payment and potentially save money over the life of the loan. This can be a useful option for individuals who plan to stay in their home for a long time or those who want to maximize their purchasing power. However, it's important to carefully consider the costs and benefits before deciding to buy down the interest rate. This helps by lowering monthly payments and can provide immediate relief to buyer budget and free up additional funds for other expenses or savings. Not to forget this helps to manage increased affordability for all borrowers. With a lower monthly payment, borrowers may be able to qualify for a larger loan amount or purchase a more expensive property while staying within their budget.

LONG TERM SAVINGS

Long term savings with a lower interest rate over the life of the loan can result in significant savings. Borrowers who plan to stay in their home for a long time can benefit from the reduced interest costs and potentially save thousands of dollars over the term of the loan. Up front fee paid for the interest rate buy down may be tax deductible. It's important to consult with a tax professional to understand the specific tax implication based on your individual circumstances. Lastly with a lower monthly payment borrowers may have more disposable income available for other financial goals such as saving for retirement, paying off other debt or investing in home improvements. This is called improved cash flow.Careful consideration of these factors will help all borrowers make an informed decision about whether to proceed with an interest rate buy down.

There are other factors such as cost benefit analysis, length of loan term, future interest rate outlook, financial stability along with loan duration. Consider all of these factors prior choosing this option. Your trusted advisor should have the perfect lender waiting for you.

TRUSTED ADVISOR 

As a trusted advisor, professional realtor and retired veteran I am here to serve you in the Dr. Phillips and Central Florida housing market for the sale or purchase of your home. In the absence of trustworthy and up to date information of the buying or selling process, whether it's a housing crisis or local housing market question, real estate decisions are increasingly driven by fear, doubt and uncertainty. We as trusted advisors drive the real estate community to ensure you are making the right decisions.

Part of my job is to keep you informed and educated about the local housing market trends, pricing inventory level, buying and selling process to include common terms and videos. It is important to keep up with the housing trends, don't let the media confuse you. They talk national level, I can provide the most current and up too date local area data.

So don't let this shifting housing market delay your dreams, data reveals home values typically appreciate over time and that gives your net worth a nice boost. When you are looking for a home, look for your realtor with the heart of a teacher. If you are ready to start your journey call Kevin Strawter today at 850 496-6412 to begin a new walk to homeownership and all your real estate needs. Referrals always welcomed.