Are you currently shopping for a new home? If so, you may have heard about the concept of seller concessions. Essentially, seller concessions are a type of agreement between the buyer and the seller that allows the seller to contribute financially to the buyer’s closing costs.
But did you know that seller concessions can actually help you secure a smaller mortgage payment? By using seller concessions toward a Temporary Rate Buydown (TRB), you can lower your interest rate at the beginning of your loan. This gives you some much-needed breathing room when it comes to managing your finances.
So how does it work? In a TRB, the seller contributes money toward your interest rate for a certain period of time. This means that you pay a lower interest rate at the beginning of your loan, which can translate into significant savings over time. You can then use this extra money for things like repairs, savings, and other expenses related to homeownership.
Keep in mind that seller concessions can vary based on the type of loan you are taking out and the specific lender you are working with. However, it’s important to consider this option as you navigate the homebuying process.
At Your Mortgage Copilot powered by Aslan Home Lending Corporation, we can help you understand your options when it comes to seller concessions and Temporary Rate Buydowns. Our experienced team is committed to helping you find the right mortgage solution for your needs. Contact us today to learn more!
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