Seller Concessions Are Back!

Yes, you read that right. While there might be some healthy debate as to whether or not we've reached a buyer's market, the reality is this: homes are staying on the market longer, prices are starting to come down with some markets seeing some pretty big cuts, and the predictions are telling us home prices could decrease even further.

So what does that mean for today's homebuyers? It means they're starting to regain some competitive advantage lost over the recent pandemic-fueled housing boom.

A seller concession making a popular comeback is rate buydowns. Sellers can provide concessions that can be used to buy down a buyer's interest rate. We have three buydown programs, each allow buyer's to lock in a reduced interest rate for at least one year, where they will see a lower mortgage payment.

2/1 Buydown: The first year's rate will be lowered by two percentage points. The second year rate will be lowered by one percentage point. Then for year three and beyond, the final permanent rate will kick in.

1/1 Buydown: The first two years will see the interest rate lowered by one percentage point, before increasing to the permanent rate in the third year and beyond.

1/0 Buydown: The first year will see a decreased interest rate (one percentage point lower), and then the rate will increase to the permanent rate in the second year for the term of the loan.

Benefits of Rate Buydowns
- Reduced interest rates and monthly payments for the first year or two of the loan
- Ease into a permanent rate while your home potentially builds equity
- Move in with more cash to spend on necessities and home improvements
- Can be used with most conventional or FHA loans

Ready to get started? Contact your Castle & Cooke Mortgage loan officer today to take advantage of the changing market!