The underwriter had to qualify them based on the base rate... unless it was hard money

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Jan 6, 2025
3:30:42pm

kimdaddy35 Former Fly Half

The underwriter had to qualify them based on the base rate... unless it was hard money

which wouldn't have a buy down anyway. Sounds like this guy just lost his income.

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kimdaddy35

Bio page: kimdaddy35
Joined: Aug 23, 2010
Last login: Jan 7, 2025
Total posts: 52,866 (1,564 FO)

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Messages

Author

Time

A good friend of mine just lost his gamble on an interest rate buy down.

rad dawg

Jan 6, 3:22pm

He can't afford his home because of a 2-1 buydown?

kimdaddy35

Jan 6, 3:24pm

Seems like a huge underwriter failure

Kajdin

Jan 6, 3:26pm

The underwriter had to qualify them based on the base rate... unless it was hard money

kimdaddy35

Jan 6, 3:30pm

I believe it was a 3-2-1 and his business has slowed.

rad dawg

Jan 6, 3:28pm

Honestly, hard to fault his decision. He made money. There are certainly non quantifiable

kimdaddy35

Jan 6, 3:33pm

He will be fine but it's a tough lesson.

rad dawg

Jan 6, 3:38pm

It would have to be a 2-1 as rates 3 years ago were low 3's.

kimdaddy35

Jan 6, 3:35pm

Not necessarily, his hasn't expired yet.

rad dawg

Jan 6, 3:45pm

<< Deleted >>

RdF3

Jan 6, 3:25pm

What should he have done in 2022 had he known high rates would persist? Would have missed out on price increase. No?

roseyscenario

Jan 6, 3:30pm

Okay but transaction costs and the fact he has to get into another house will

rcbyufan

Jan 6, 3:34pm

Yes, at least some appreciate since rates have risen.

kimdaddy35

Jan 6, 3:35pm

Sounds like he is coming out ahead and got his dream home for a few years.

Baron

Jan 6, 3:43pm

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