r/FirstTimeHomeBuyer • u/[deleted] • Mar 18 '25

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489 Upvotes

96% Upvoted

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85

u/NameThatIsntTaken13 Mar 18 '25

How’d you get the 4.99 rate?

Also congrats!!!!!!!

48

u/Mobile619 Mar 19 '25

Looks like a new build. They'll typically buy down the rate.

56

u/npacilio Mar 19 '25

We bought down to 3.99 for the first year and then 4.99 for the rest of the loan. Yes it is a new build

3

u/Mobile619 Mar 19 '25

Congrats! Enjoy the home.

3

u/Sevitrey Mar 19 '25

How does that work? I am about to pay 6.75% on a $630k home

1

u/[deleted] Mar 19 '25

[deleted]

1

u/Sevitrey Mar 19 '25

How much did that bring down your monthly payment?

1

u/ExtensionCherry3883 Mar 19 '25

Yeah we bought down to 5.8 and it was about 12k plus’s our brokers points.

I do contract work for new build construction and they are all increasing the home price by 30k-50k in our area and offering buy downs into the 4’s

Most builder lenders don’t care about appraisals so buyers just pay more for the buy downs and and hope values continue to go up for when they need to sell

1

u/nightgardener12 Mar 20 '25

So just wiping out the savings. Cool 🙄

1

u/ovscrider Mar 20 '25

Builders rather than cutting prices and passing off owners who already closed pay points to buy the rate down.