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With a full shift in power from a seller's market to a buyer's market, both sellers and buyers need to
reevaluate the best approach to a transaction. The examples below illustrate how a simple seller credit
towards the buyer's Interest Rate can produce significant monthly savings for the buyer.

Normal Price Reduction Rate Buydown

Sales Price $552,000 $537,000 $552,000

Down Payment % 20% 20% 20%

Loan Amount $441,600 $429,600 $441,600

Program 7/1 IO Arm 7/1 IO Arm 7/1 IO Arm

Rate 6.625% 6.625% 5.875%

Term IO IO IO

Payment $3,088.00 $3,021.75 $2,812.00

Income to Qualify $7,720.00 $7,554.38 $7,030.00

Monthly Savings $66.25 $276.00

In this example we used 2.125 in points or $15,000 to buy down the in- Ken Caiani
terest rate from 6.625% to 5.875% resulting in a net savings of $276.00 Owner
per month. 303-830-1151
www.informmortgage.com
Also, the points are a t ax deduction in the year the property is purchased ken@informmortgage.com
for the buyer. Please consult your CPA for specific information. Inform Mortgage
1554 S. Downing St.
This example is to show you the power of reducing Rate versus Price. Denver · CO · 80210
Let’s meet and discuss how this strategy can help you finance or sell the
home of your dreams!

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