12/03/2023
RATE BUY DOWN
I've recently seen a few people asking about buying down rates. Here's an example of what buying down a rate would look like. This is a recent refinance loan I closed on a STR. LTR Rates are slightly lower.
Par Rate
Rental 360 Product Rate / DSCR Principal & Interest
5/6 Arm, Short Term Rental 8.175%/1.3129 $3,228.32
7/6 Arm, Short Term Rental 8.275%/1.3025 $3,258.72
30 Year Fixed, Short Term Rental 8.375%/1.2923 $3,289.21
1% of loan amount Buy down
Rental 360 Product Rate / DSCR Principal & Interest
5/6 Arm, Short Term Rental 7.975%/1.3341 $3,167.83
7/6 Arm, Short Term Rental 8.075%/1.3234 $3,198.02
30 Year Fixed, Short Term Rental 8.175%/1.3129 $3,228.32
2% Buy down
Rental 360 Product Rate / DSCR Principal & Interest
5/6 Arm, Short Term Rental 7.775%/1.3558 $3,107.75
7/6 Arm, Short Term Rental 7.875%/1.3449 $3,137.74
30 Year Fixed, Short Term Rental 7.975%/1.3341 $3,167.83
3% Buy Down
Rental 360 Product Rate / DSCR Principal & Interest
5/6 Arm, Short Term Rental 7.675%/1.3669 $3,077.88
7/6 Arm, Short Term Rental 7.775%/1.3558 $3,107.75
30 Year Fixed, Short Term Rental 7.875%/1.3449 $3,137.74
Every scenario is different due to cash flow, credit score, LTV & property type but here is an example of what a buy down rate would look like.
I'd be happy to answer any questions you may have.
832-221-0022
[email protected]
NMLS # 1550939
Lending Nationwide
