Financing Your First Denver Home
First-time Denver homebuyers and sellers might want to consider an alternative to a price reduction, since the monthly payment is usually a huge concern to them. The monthly payment is essential for the budget minded, but it is also extremely important for the buyer to qualify. Here is a financing possibility for both buyers and sellers to consider:
A 5 % interest rate on a 30-year fixed mortgage sounds pretty good, doesn’t it? While we think this is a great rate, here is another possibility for a seller to consider – instead of taking a lower price for a home, how about the seller paying 2.25% of the sale price and offering this great rate to the buyer?
Example:
Sale Price: $278,000 X 2.25% = $6,255
Loan 90% $250,000 X 2.50%* = $6,255
Payment for $250,000 @ *4.375% = $1,248.21
VS Seller reducing price by 2.25% and buyer pays market rate of 5% = $1,312.9
(* 2.50% of the loan amount paid by seller.)
The pricing can be very similar for FHA buyers as well.
For more information on financing your first Denver home, or for a lender recommendation, please contact TeamCox Realtors – Denver real estate specialist – at 303-400-6060.
TeamCox Realtors – Treating our clients’ real estate transactions as if they were our own.
If you are looking for a home in Denver and the surrounding area then contact TeamCox for professional Real Estate Assistance