Thinking about lowering your asking price? A seller-paid mortgage rate buydown could be a better alternative. In this hypothetical example, a $20,000 price reduction saves the buyer about $106 per month, while a temporary 2-1 rate buydown could reduce their payment by over $1,000 per month in the first year.
The catch: that savings is temporary, and the buyer must still qualify at the full mortgage rate. Before reducing your price, compare the options and understand how each affects your net proceeds. The longer explainer on how a 2-1 buydown works is on this site too.
If your Orange County listing is sitting and you are weighing a price cut, reach out — Katherine is happy to run both options for your home.
Disclaimer: Figures are hypothetical and exclude taxes, insurance, HOA fees, and mortgage insurance. Buydown costs vary by lender; all seller concessions are subject to lender approval, financing requirements, and appraisal considerations.