Mortgage Tips & Home Loan Insights for Florida & Maine

When buyers and sellers think about making a deal work, the first thought is often a price reduction. But that is not always the smartest move. In some cases, a seller paid rate buy down can offer more real value to a buyer than a small drop in the sales price. Instead of simply lowering the purchase price, the seller contributes funds at closing to help reduce the buyer’s interest rate. That lower rate can lead to a lower monthly mortgage payment, which may make the home mor

When most homebuyers compare mortgage quotes, the first thing they look at is the interest rate . A lower rate sounds better, and it often grabs the most attention. But there is an important detail many borrowers do not realize. Sometimes the lower rate comes with discount points , which means you are paying money at closing to obtain that lower interest rate. Discount points are essentially prepaid interest. In most cases, one point equals 1 percent of the loan amount . On a