What is a Rate Buy-Down?

A rate buy-down allows homebuyers in San Diego to reduce their mortgage interest rate by paying an upfront fee at closing. This strategy can help buyers achieve lower monthly payments and more affordable real estate financing in the San Diego market.

Buyers have two main options:

• Permanent Buy-Downs: Reduce the interest rate for the entire term of the mortgage loan.
• Temporary Buy-Downs: Options like a 2-1 buy-down, where the rate is lower for the first few years, are available to help buyers in the initial phase of ownership.

Rate Buy-Down Example in San Diego

Consider a scenario where Gina Mancuso’s clients are purchasing a $950,000 home in San Diego with a $760,000 mortgage. Without a buy-down, the current 30-year fixed mortgage rate of 7.5% results in monthly payments of around $5,311.

However, by utilizing a rate buy-down and reducing the rate to 6.5%, Gina can help lower the payment to approximately $4,810, saving her clients about $500 per month. The buy-down cost could range between 1-2 points, equaling around $7,600 - $15,200.

How Gina Mancuso Can Assist with Rate Buy-Downs in San Diego

As a highly experienced real estate agent in San Diego, Gina Mancuso offers invaluable assistance to clients considering a rate buy-down for their property purchase:

• Negotiating Seller Concessions: Gina uses her local expertise to negotiate seller concessions to cover buy-down costs, making San Diego homes more affordable for her clients.
• Connecting with San Diego Lenders: Gina partners with trusted San Diego lenders who can offer flexible rate buy-down options, ensuring her clients receive optimal financing support.
• Long-Term Savings Calculations: Gina evaluates whether the buy-down cost aligns with her client’s financial goals, maximizing long-term savings in the competitive San Diego real estate market.
• Efficient Process Management: For busy clients like physicians, Gina efficiently manages the buy-down process and ensures a timely close, supporting clients with demanding schedules.

With Gina Mancuso’s expertise, San Diego homebuyers can navigate rate buy-down options confidently and secure a manageable monthly payment on their dream home.