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

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Jan 6, 2025
3:34:12pm

rcbyufan All-American

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

Eat up all those gains. He would be better off if he were still in his 2018 house with a low rate.

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rcbyufan

Bio page: rcbyufan
Joined: Aug 18, 2010
Last login: Jan 7, 2025
Total posts: 33,466 (1,185 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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