Buy-down

[andrew martin]

CAn you shed any light on the term Buy-down. I've heard of this in relationship to stick-built homes. How does it apply to MH?

A loan company I'm considering a loan with is using this term. They are asking for 26.67 down on a 20 year fixed loan. When I calculate the figures at Realtor.com the monthly payment comes out $60 less than the loan company's figure.

Thanks for your help.

Andrew

[rmurray]

By now they should have given you the federal disclosures called RESPA forms...These are a disclosure of all the fees regarding the loan they are offering...A buydown is a up front fee (often added to the loan principle) to lower the interest rate...This is basically paying interest in advance for a slightly lower interest every year....You will be adding a lot to the principle which means your payoff will be much higher till the end of the loan...Buy downs on 20 year loan are usually about 1% fee for every 1/4 point interest relief...Some lenders allow adding up to 8% to lower the rate 2 points...Over the full term..you would be ahead...but with any prepayment..you probably would not....Shop loans on this site for some of the best deals in the industry...Post the full details here for better advice...

[linda]

Can you help me figure out how ARC Communities sold 7 new homes in CA
for As low as $5.000 -- $22.000 ???
Any Information on ARC Communities? Or there Lancaster, CA Lido Estates?
The woman running that place is not right, the poor girl I don't think she knows how to speak the truth.
Origin won't loan in there any reason?
Why is there so much lack of Information on there part?
Do the mangers have to have sales back ground to sell to me or can I just buy
from ARC and Not have to speak with this girl?
Thank you
Linda

[David Oxhandler]

You can contact Affordable Residential Communities:
By E-Mail at [email protected]
Their Web Site Contact Request Form
Snail Mail :600 Grant Street, Suite 900, Denver, CO 80203
Phone: (800) 245-5415 or (877) ARC-7036