What makes more sense: 1-2 buydown or straight 5% interest rate?
House is $167,000
We are both recent graduates so our income will be increasing over the next few years over what it is now.
The buydown consists of a 3.5% rate the first year, 4.5% the second year, and 5.5% fixed for the next 28 years, or we can do a 5% interest rate for 30 years.
We plan on only staying in the house 4-6 years.
What shoudl we choose??!!
The 2-1 Temporary Buydown will be the more cost effective alternative to a permanent Buydown...
especially if you plan to be in the home for 4-6 years.
You can check out the actual numbers;
http://www.321advantage.com/buyers-calculate-your-rate
Temporary Buydowns are a GREAT option for buyers who anticipate an increase in earnings and would like to ease into homeownership comfortably and confidently.
Good Luck!
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