sgip
Well-known member
Buy your loan down (see below) or cut their price by 1.5 times the amount of the concessio n and take a market interest rate. 50% higher than those shown below?
Assumes a $650k price and a $417k loan. Yes, there are some service providers with lower costs - some higher as well - and other factors go into each rate (Condo vs SFD, FICO scores). This is a general quiz, not final exams.
30 fixed - 4.00 rate, about 4.50 points or $18,765 or $28,150 in price reduction.
10/1 ARM - 3.50% rate, about 2.25 points or $9,382 or $13,992 in price reduction.
5/1 ARM - 2.50% rate, about 1.50 points or $6,250 or $9,375 in a price reduction.
I'm asking because there are many Agents (none from the board BTW) who have asked me recently "Where are all the buyers?". They're out there, but they just aren't looking at WTF listings. Anything priced right will sell as we all know. What about those houses that are close to market? Should the seller lower their price or offer concessions? Curious what the Collective Mind thinks.
PS - I won't be back on TI until late Sunday to respond. Post away in the mean time.
Soylent Green Is People.
Assumes a $650k price and a $417k loan. Yes, there are some service providers with lower costs - some higher as well - and other factors go into each rate (Condo vs SFD, FICO scores). This is a general quiz, not final exams.
30 fixed - 4.00 rate, about 4.50 points or $18,765 or $28,150 in price reduction.
10/1 ARM - 3.50% rate, about 2.25 points or $9,382 or $13,992 in price reduction.
5/1 ARM - 2.50% rate, about 1.50 points or $6,250 or $9,375 in a price reduction.
I'm asking because there are many Agents (none from the board BTW) who have asked me recently "Where are all the buyers?". They're out there, but they just aren't looking at WTF listings. Anything priced right will sell as we all know. What about those houses that are close to market? Should the seller lower their price or offer concessions? Curious what the Collective Mind thinks.
PS - I won't be back on TI until late Sunday to respond. Post away in the mean time.
Soylent Green Is People.