Buying down the interest rate from 3.700 % to 3.700 % on a $75,000 mortgage over a 36 month
term results in a new lower monthly payment of $229.49.
The Buydown Cost of $0 includes present values (3.700 % discount rate) of :
$0 for monthly payment differences
and $0 for end of term balance differences.
The home is now $0.00 per month more affordable to any potential puchaser.
With NO interest rate buydown, affordability could only be increased by
reducing the home price to $100,000 (keeping at 25 % down payment) in order for the monthly payment to also be $229.49 given
current market rates of 3.700 %. The cost of this is a price reduction of $0
Learn MORE about Interest rate buydowns by reading in the learning centre