#buydown on investment

[yousuf27]

Financial flexibility with a 2-1 buydown on investment property. initial payments and enhanced affordability make it a strategic choice for investors.

[paulsmarj]

Thinking of upgrading but your low interest rate is holding you back? There's a smart move for that! 🏠💡 Keep your current home and use its equity for a down payment on your next one. Convert it into a rental to cover expenses and even earn extra for your new mortgage. Plus, negotiate an interest rate buydown on your new property. This way, you're not just moving homes, you're stepping into real estate investment, building equity in two properties while keeping your favorable rate. Intrigued? Let's craft a wealth-building strategy that suits you. #realestateinvestment #homeupgrade #equitybuilding #financialstrategy #smartmoves http://dlvr.it/T2fKMD

[beachsiderealestategroup]

Ready for some real talk about securing a mortgage this fall in Mexico? As interest rates rise, more homeowners in Mexico are considering buying down their interest rates. Curious about what that means and if it's right for you? Here's the rundown on mortgage rate buydowns in Mexico: A mortgage buydown in Mexico is a way to lower your interest rate by paying discount points at closing. These discount points are a one-time, upfront fee. Each point in Mexico typically costs 1 percent of the mortgage amount. For example, one point on a $200,000 mortgage would cost $2,000. Each point in Mexico usually lowers the interest rate by 0.25 percent. So, one point would lower a mortgage rate from, for instance, 6 percent to 5.75 percent for the entire duration of the loan. If you have some extra savings and can afford it, buying mortgage points in Mexico may be a smart investment. Have more questions about buying a home or securing a mortgage in Mexico this fall? Feel free to send me a direct message - I'm here to help in any way I can.

https://beachsiderealestategroup.com/ #MexicanRealEstate #FinanceMexico #HomeownershipMexico #MortgageTips #MexicanPropertyMarket #InvestInMexico #PersonalFinanceMX #MortgageSavings #RealEstateAdviceMX #FinancialPlanning #HomeBuyingTips #MortgageEducation #MexicoHousingMarket #SmartInvestingMX #PropertyOwnershipMX

[thxnews]

Transforming Global Health: Climate-Resilient Initiatives Unveiled

  A Pioneering Partnership for Global Health

In a groundbreaking move, the World Bank and the Global Fund to Fight AIDS, Tuberculosis, and Malaria announced today the signing of a new Memorandum of Understanding (MoU). This collaborative effort outlines a strategic plan to fortify health systems in the Global South, aiming to bolster efficiency, effectiveness, and sustainability in the face of climate change.   Tackling Climate-Induced Health Challenges Head-On Rising temperatures, shifting disease patterns, and the looming threat of pandemics prompted World Bank President Ajay Banga to emphasize the urgency of a comprehensive response. "We cannot make adequate progress on public health without responding aggressively to the challenges posed by climate change," Banga stated, underscoring the need for a united front.  

Prioritizing the Most Vulnerable

The focus of this partnership extends to climate and health priorities, specifically targeting malaria, HIV/AIDS, and tuberculosis (TB). By strengthening health systems and improving access to primary healthcare services, particularly for vulnerable populations, the two organizations aim to make a significant impact on global health outcomes.   The Human Toll of Climate Change The World Bank estimates that by 2030, 132 million people may be pushed into extreme poverty due to climate change. Alarmingly, one-third of this number will result from climate-related health risks, disproportionately affecting the poorest and most vulnerable communities.  

Building Resilient Health Systems

"To stand a chance at achieving the targets of ending AIDS, TB, and malaria, we must redouble our efforts to fight these diseases," asserted Peter Sands, Executive Director of the Global Fund. Sands stressed the necessity of investing in health systems capable of withstanding the effects of climate change, particularly as malaria serves as an early indicator of climate impact on health.   Advocating for Financial Support Crucially, the two organizations will advocate for increased financing for health, aiming to build the country's capacity for more efficient and sustainable financing across health systems. The goal is to maximize the use of limited domestic and international health resources through improved public finance management.  

Strengthening Health Supply Chains

Another key focus area is the regional production and procurement of health supplies, including drugs and medical devices. The organizations aim to enhance access to essential health supplies, ensuring preparedness and resilience in health systems. Efforts will be directed towards localizing health supply chains, and supporting sustainable manufacturing in Africa and low- and middle-income countries.   Collaborative Success Stories Since 2017, the World Bank and the Global Fund have collaborated on various successful projects. From a loan buydown in India to innovative funding linked to improved TB detection in Indonesia, and increased primary healthcare services in Haiti, these initiatives have showcased the potential for positive change.  

About the Global Fund and the World Bank Group

In the fight against HIV, TB, and malaria, the Global Fund is a global partnership that raises and invests over US$5 billion annually. Since 2002, this alliance has saved an astounding 59 million lives, uniting leaders, communities, and the private sector to tackle the world's deadliest infectious diseases. On a parallel front, the World Bank Group envisions a world free of poverty on a livable planet. Operating in over 100 countries, the World Bank Group provides financing, advice, and innovative solutions to confront urgent global development challenges. Comprising entities such as the World Bank, IFC, MIGA, and ICSID, it stands as one of the largest sources of funding and knowledge for developing countries. Together, these organizations forge a path toward a healthier, safer, and more equitable future for all.   Sources: THX News & The World Bank. Read the full article

[miamibeachbroker]

📉🏠 Exploring Temporary Interest Rate Buydowns! 🔑💰 Did you know? You have the power to temporarily reduce your mortgage interest rate on fixed loans, all while keeping it under a 3% limit! 🌟💲 Temporary interest rate buydowns are a savvy strategy to make homeownership even more affordable. By 'buying down' your rate for an initial period, you can ease into your mortgage and save on monthly payments. It's like having a financial cushion when you need it most! 🏡 Looking to secure your dream home without breaking the bank? Or perhaps optimizing your investment property returns? Stay tuned as we dive deeper into the world of temporary rate buydowns. We'll uncover the benefits, share expert insights, and guide you through the process. Your path to smarter mortgage decisions begins here! 🚀🏘️ #RateBuydowns #MortgageStrategies #SmartFinancing #AffordableHomeownership #UnlockSavings

[billphxrealtor]

Home Buying Advantages in Today’s Real Estate Market

Posted by

Bill Salvatore- Realtor

January 9, 2023

Buying a Home

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Home prices undoubtedly soared over the past couple years, but as any renter can tell you, rents have absolutely exploded. According to an article in the New York Post, rent increases in 2021 were more than double what they had been in any previous year.

A recent decrease in home prices has been old news for a few months now, and to some extent the prices of rent as well. Neither of these developments is surprising- the cost of purchasing a home throughout the U.S. had reached a saturation point never before seen in our market, plus home buyers were understandably becoming wary of what they saw as unreasonable home sellers who were open to no compromise including necessary repairs. In addition, the FED has raised interest rates in an effort to curb inflation, stabilize the economy and steer our Real Estate market back toward something resembling ‘normal’.

Home buyers hold far more of the cards in today’s adjusting market. They are once again in a position to request, and in some cases demand, that sellers consider negotiations that just a year ago would have been automatically ignored. The reestablishment of contract concessions as commonplace is huge for home buyers.

So what sort of allowances are home sellers making? Necessary repairs are back with a vengeance and even requests for purely cosmetic updates like paint and carpeting are not unheard of. Seller contribution toward home buyer’s closing costs are becoming more common However mortgage buydowns may be the one concession every home buyer should consider including in their contract negotiations.

So what is a mortgage buydown? Maybe the most useful way to neutralize the impact of rising mortgage interest rates. A mortgage rate buydown works like this. The home buyer pays a one-time upfront fee (often negotiated via contract to be paid by the seller), usually a percentage of the mortgage amount, to literally buy down the interest rate. This most commonly continues for the life of the loan. Note: incremental buydowns are also available though not nearly as popular.

Debunking the Top 4 Renting-Is-Better-Than-Owning Myths

If you’ve never bought a home before, you may have been lead to believe that renting is a smarter choice than buying. However, for the vast majority of people, that simply is not accurate. Below are some of the top myths, and myth busters regarding the advantages of renting over owning.

Myth No. 1: You can’t afford the down payment. Many would-be homebuyers opt for renting believing that they won’t be able to afford to save the 20 percent down payment. In reality, you usually don’t need to put 20 percent down. In fact, you can often put 5, 10 or even as low 3.5 percent down.

Myth No. 2: Renting is cheaper. Even if your monthly mortgage payment ends up being a little higher than what you might have paid in rent, that money is going toward your own long-term financial investment. Owning your home amasses equity. When you pay rent, you’re making your landlord richer, not yourself.

Myth No. 3: You won’t recoup your money. Unlike stocks, real estate has long been considered the safest long-term investment you can make. Yes, the market will experience cycles, but if you’re in it for the long-run, it is reasonable to expect that you will earn back your investment (and then some).

Myth No. 4: Renting is less of a hassle. Certainly, you have less vested in a rental, but the blood, sweat and tears you invest turning a house into your home is not only richly rewarding but satisfying in a whole other way. Not only are you creating and living in the environment that you want without the restrictions of a landlord, you are also building upon your original investment with each and every repair, improvement or update.

Reprinted with permission from RISMedia. ©2017. All rights reserved.

For more information, Call or Text: 602-999-0952

eMail:

golfarizona@cox.net

Bill Salvatore / Arizona Elite Properties

Your Valley Property Team

Residential Sales, Marketing, and Property Management

Selling Arizona for more than 20 years

Founder: AZVHV Arizona Veterans Helping Veterans Recipient: East Valley Tribune’s: Best Gilbert, Arizona Realt

[sellmyhousefastarizona]

Phoenix housing market favors buyers. Here’s what analysts say

The Greater Phoenix housing market has been booming for the past two years, but now it is slowly cooling off. Tina Tamboer, senior housing analyst at The Cromford Report, spoke about the condition of the real estate market, how iBuyers are affecting things and what to expect next Valley Partnership breakfast on Nov. 18.<br><br>

Looking at the Housing Opportunity Index reveals that the second quarter (Q2) of 2021 was a turning point in housing affordability in the Phoenix Metro. “We want a family making the median family income to be able to afford 50% to 75% of what’s [for sale],” Tamboer explains. “When [the index] went below 60% [in Q2 2021], we expected demand to come down and prices to stabilize. When that didn’t happen, that created a bigger red flag.”  <br><br>

In the region, as affordability of homes decreased, so did the percent of home sales that were meant to be primary residences. "Owner occupants got pushed out--they went from 80% [of home sales] to about 62% by this year's second quarter," Tamboer says. "[Then] we started seeing investors coming in."<br><br>

"False demand" occurs when investors purchase homes with the intention of flipping them or renting them out, rather than living in the home themselves. This activity can distort demand data, since it inserts another transaction between the original seller and the final buyer. Tamboer notes that this type of investment has been on the rise in Phoenix Metro, starting in Q2 2021.<br><br>

As prospects became more scarce in the housing market, companies funded by Wall Street still continued to buy and sell homes to one another. Unlike regular home buyers who are price sensitive and risk-averse, these businesses were mostly unphased by those factors, driving up prices as they competed for fewer properties.<br><br>

“Starting the second quarter [of 2021], [Opendoor] had more active for-sale listings than under contract. Generally, that’s not a good thing,” Tamboer explains. “Come April [2022], when mortgage rates went above 4.4%, we started to see Opendoor acquiring and holding onto more inventory than they would like. They didn’t have the demand there.” <br><br>

Mortgage rates in October were at 7.37%, but have lowered since then. By Q3 of 2022, the Housing Opportunity Index fell to 22.5% because mortgage rates had increased throughout that year; however, now with home loans being more expensive and taking away overall purchasing power from buyers, sellers are making interests buydowns or covering closing costs as an enticement to customers.<br><br>

When considering factors such as these, it's clear that buyers have more power than sellers in the current market. The Cromford Market Index - which tracks trends for supply and demand - now supports this fact by showing us that we're currently in a buyer's market.<br><br>

The Cromford Market Index is set to 100 when the market is balanced. If it falls below 90, prices will not rise as fast as inflation. This number reached its all-time low in 2007 at 26.5 before housing prices crashed. On the other hand, a score over 110 means that it's a seller's market where prices are rising faster than inflation rates.<br><br>

“As of Wednesday [Nov. 16], we have glided into a buyer’s market. We’re not plummeting,” Tamboer concludes. “We’re literally kissing a buyer’s market and people are panicking or asking, ‘Can I offer 50% below listing price now?’ No, it’s not that time yet. I’m still feeling pretty optimistic.” 

[whatisyour1more]

What is 2-1 Buy-Down and How Can it Help You Lower Your Mortgage

When interest rates rise, finding a home you can afford can be challenging. However, you can do a few things to make the process easier. For example, what if there was a way home buyers could lower their mortgage payments for the first years of their ownership?   

I’m talking about a 2-1 buy-down. It’s a tool on the Fannie Mae table that allows buyers to pay a 2% lower fixed rate, generally for the first two years of ownership.

 While this homeowner strategy has been around for some time, we’re seeing it reenter the market as an attractive option for buyers and sellers.  

  How it Works

To put it in plain terms, a 2-1 buydown is a temporary fixed interest rate mortgage that slowly rises every six months or one year. Essentially, it’s a graduating payment method that allows buyers to pay less upfront. For the first two years, the loan is picked up by a third party, i.e., by the seller, as a concession.

 It should be noted that this strategy isn’t a permanent way to get a fixed rate, but it does have some interesting benefits that have become increasingly relevant in our current market.   

Why this is an Attractive Option for Both Buyers and Sellers

While a 2-1 buydown is just a temporary strategy, there are specific people for whom this can work very well. Let’s see how buyers and sellers could potentially find value in this financing option.  

Sellers

 Why would a seller want to offer this as a concession? The most straightforward reason is that it can reduce the cost of the home and attract buyers to an otherwise slow-moving deal. 

 If you’re having difficulty finding someone to buy your home, offering a 2-1 buydown can ensure you move the sale along. It can help ease your buyer into the house and the payment process. 

 Buyers  

Several types of buyers can easily benefit from getting a temporary fixed rate:  

Buyers who may only need the home for a short time. If you’re only going to buy a house for a couple of years, why pay the full mortgage rate if other options allow you to pay less upfront? If you know you’ll be moving houses within the next couple of years; a 2-1 buydown might be right for you.  

Buyers expecting a rise in income in the coming year. Maybe you just got a new job, or you work commission-based. Whether climbing the career ladder or expecting a raise, you can save money on your mortgage until you make the transition.   

Buyers who have a low-risk appetite. If you’re banking on the possibility that interest rates will lower, then this would also be an attractive option for you. By the end of the two years, if interest rates lower, you can refinance and come away having saved money. 

 Final Thoughts

Ultimately, the 2-1 buydown has been a tool people have used to hedge against current interest rates. Even though it seems to benefit home buyers more than sellers, sellers win by securing a sale in a slow-moving market by lowering the buyer’s costs. 

 It’s no wonder we’ve seen this strategy reenter the market recently, with expectations that interest rates will go down in the coming years. Whatever end of the investment spectrum you find yourself on, a 2-1 buydown is a financing option you definitely want to consider.

[jeevanpunni]

Investing in Real Estate - Purchasing Residential New or Pre-Construction Homes for Investment

One way to invest in real estate is by purchasing new construction or pre-construction residential homes. This is a highly lucrative way to make profits quickly. Many times your home will increase in value before it is even built.

About ten builders are responsible for over 90% of the new homes built in the United States each year. These builders usually announce when and where they intend to build a new tract of homes well in advance of ever breaking ground. They are looking for areas where there is growth potential in terms of population, marketplace appeal, and ability to buy. They spend many millions of dollars for research to find just the right areas across the country before they begin building. As an investor you can profit from this extensive research.

When a home builder first announces to the community that they intend to build a specific number of homes in a particular area they generally hold an open house for all perspective and potential buyers to attend. Realtors are also invited because it is typical for the builder to offer a 2-4% commission on any homes that are sold through the area realtors. They will set up a sales office where you can see the artist's rendering of the homes that will be built, as well as see brochures showing the floor plans and options that will be offered. Try to visit the sales office quickly so that you can be among the first to choose a floor plan, model, and location that you may be interested in purchasing. See here preconstruction townhomes toronto

The builders often will offer sales concessions to the first buyers to commit contractually to purchasing one of the new homes. These concessions may come in the form of money towards closing costs, a buydown of the interest rate for the first 2-5 years so that the payments will be more affordable, a credit towards landscaping or home furnishings, or other creative means. Their goal is to sell as many homes as possible during this early stage so that they can develop more projects in either the same or other areas. You benefit by having the first choice of model and location within the new development.

[lovehvm70]

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[danielzairick]

Investors, Should You Be Paying Mortgage Points?

What investor wouldn't like having a lower mortgage and interest rate? One way to do this is pay mortgage points. In this article, I'll break down when to use this buydown method.

View the full article: Investors, Should You Be Paying Mortgage Points? on The BiggerPockets Blog | Real Estate Investing & Personal Finance Advice. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

from The BiggerPockets Blog | Real Estate Investing & Personal Finance Advice https://www.biggerpockets.com/blog/paying-mortgage-points via IFTTT

[billphxrealtor]

Home Buying Advantages in Today’s Real Estate Market Posted by Bill Salvatore- Realtor Buying a Home, Economy, Equity, Mortgage and Finance, Real Estate, Real Estate Investing Leave a Comment Home prices undoubtedly soared over the past couple years, but as any renter can tell you, rents have absolutely exploded. According to an article in the New York Post, rent increases in 2021 were more than double what they had been in any previous year. A recent decrease in home prices has been old news for a few months now, and to some extent the prices of rent as well. Neither of these developments is surprising- the cost of purchasing a home throughout the U.S. had reached a saturation point never before seen in our market, plus home buyers were understandably becoming wary of what they saw as unreasonable home sellers who were open to no compromise including necessary repairs. In addition, the FED has raised interest rates in an effort to curb inflation, stabilize the economy and steer our Real Estate market back toward something resembling ‘normal’. Home buyers hold far more of the cards in today’s adjusting market. They are once again in a position to request, and in some cases demand, that sellers consider negotiations that just a year ago would have been automatically ignored. The reestablishment of contract concessions as commonplace is huge for home buyers. So what sort of allowances are home sellers making? Necessary repairs are back with a vengeance and even requests for purely cosmetic updates like paint and carpeting are not unheard of. Seller contribution toward home buyer’s closing costs are becoming more common However mortgage buydowns may be the one concession every home buyer should consider including in their contract negotiations. So what is a mortgage buydown? Maybe the most useful way to neutralize the impact of rising mortgage interest rates. A mortgage rate buydown works like this. The home buyer pays a one-time upfront fee (often negotiated via contract to be paid by the seller), usually a percentage of the mortgage amount, to literally buy down the interest rate. This most commonly continues for the life of the loan. Note: incremental buydowns are also available though not nearly as popular. Debunking the Top 4 Renting-Is-Better-Than-Owning Myths If you’ve never bought a home before, you may have been lead to believe that renting is a smarter choice than buying. However, for the vast majority of people, that simply is not accurate. Below are some of the top myths, and myth busters regarding the advantages of renting over owning. Myth No. 1: You can’t afford the down payment. Many would-be homebuyers opt for renting believing that they won’t be able to afford to save the 20 percent down payment. In reality, you usually don’t need to put 20 percent down. In fact, you can often put 5, 10 or even as low 3.5 percent down. Myth No. 2: Renting is cheaper. Even if your monthly mortgage payment ends up being a little higher than what you might have paid in rent, that money is going toward your own long-term financial investment. Owning your home amasses equity. When you pay rent, you’re making your landlord richer, not yourself. Myth No. 3: You won’t recoup your money. Unlike stocks, real estate has long been considered the safest long-term investment you can make. Yes, the market will experience cycles, but if you’re in it for the long-run, it is reasonable to expect that you will earn back your investment (and then some). Myth No. 4: Renting is less of a hassle. Certainly, you have less vested in a rental, but the blood, sweat and tears you invest turning a house into your home is not only richly rewarding but satisfying in a whole other way. Not only are you creating and living in the environment that you want without the restrictions of a landlord, you are also building upon your original investment with each and every repair, improvement or update. Reprinted with permission from RISMedia. ©2017. All rights reserved.