psycontr Posted April 3 Report Posted April 3 Currently locked interest rate with 2-1 buydown. Used all seller closing credits to buydown instead of buying points. I checked with lender will the buydown money goes to new lender or reduce principal balance if I refinance. They said after making 6 payments you can refinance and buydown left over money will reduce principal balance if I refinance. Is there such a 6 month rule for refinance ? I did not see any such rule in loan disclosure form. Quote
pandugadu999 Posted April 3 Report Posted April 3 rate buydown chesa antav..malla buydown money endi? Quote
Sizzler Posted April 3 Report Posted April 3 1 hour ago, psycontr said: Currently locked interest rate with 2-1 buydown. Used all seller closing credits to buydown instead of buying points. I checked with lender will the buydown money goes to new lender or reduce principal balance if I refinance. They said after making 6 payments you can refinance and buydown left over money will reduce principal balance if I refinance. Is there such a 6 month rule for refinance ? I did not see any such rule in loan disclosure form. You are allowed to refinance whenever you like… don’t know about the buy down , principal scenario. Quote
Sizzler Posted April 3 Report Posted April 3 45 minutes ago, Android_Halwa said: 7/1 ARM option leda ? ARMs are expensive than regular options now. Quote
psycontr Posted April 3 Author Report Posted April 3 1 hour ago, pandugadu999 said: rate buydown chesa antav..malla buydown money endi? Not rate buy down. With this option seller given closing credit they will put in escrow approx $20k in my case. This is 2-1 buydown mean if your base rate is 7 and base monthly premium is $5k for first year you pay $4k and they will add $1k from escrow, second year you pay $4.5k and they will add $500 until your buydown funds in escrow exhaust. now question is if I refinance before exhausting $20k buydown funds in escrow will remaining balance can be used to reduce principle amount ? Quote
psycontr Posted April 3 Author Report Posted April 3 1 hour ago, Android_Halwa said: 7/1 ARM option leda ? Yes ARMs are expensive now Quote
psycontr Posted April 3 Author Report Posted April 3 1 hour ago, Sizzler said: You are allowed to refinance whenever you like… don’t know about the buy down , principal scenario. Buydown money they are putting in escrow some saying if you refiance remaining fund in escrow will be used to pay principal balance. Quote
Android_Halwa Posted April 3 Report Posted April 3 3 minutes ago, psycontr said: Yes ARMs are expensive now Couple of months back, I saw ARM’ rates were much lower than 2:1…ask builder to pay for the ARM and use closing credit to pay for closing… Looking at economic prospects, Interest rates may just go up again Quote
psycontr Posted April 3 Author Report Posted April 3 12 minutes ago, Android_Halwa said: Couple of months back, I saw ARM’ rates were much lower than 2:1…ask builder to pay for the ARM and use closing credit to pay for closing… Looking at economic prospects, Interest rates may just go up again Now ARM and 30yr almost same rate. Builder closing credit after closing expenses oka $20k untai so avi 2:1 lo petti refinance chesthe principal balance will lower by $20k antunnaru and bayata lower rate undhi compared to builder lender. Quote
Sizzler Posted April 3 Report Posted April 3 17 minutes ago, psycontr said: Buydown money they are putting in escrow some saying if you refiance remaining fund in escrow will be used to pay principal balance. That will be good if it is true. Congratulations on your new home! Quote
Android_Halwa Posted April 3 Report Posted April 3 3 minutes ago, psycontr said: Now ARM and 30yr almost same rate. Builder closing credit after closing expenses oka $20k untai so avi 2:1 lo petti refinance chesthe principal balance will lower by $20k antunnaru and bayata lower rate undhi compared to builder lender. Anyway, Congrats. Closing epudu ? Buydown money vunte, go for builder lender and oka few months la escrow credit tho buy down cheyadam better.. Rates are lower today…check it out. You may get 30 year conventional for 6.8% Quote
psycontr Posted April 3 Author Report Posted April 3 1 minute ago, Android_Halwa said: Anyway, Congrats. Closing epudu ? Thank you. This month end. Quote
psycontr Posted April 3 Author Report Posted April 3 2 minutes ago, Sizzler said: That will be good if it is true. Congratulations on your new home! Thank you Quote
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.