If you're in the Southern California real estate market, particularly San Diego, a revolutionary strategy awaits to significantly lower your mortgage rates. Kyle Whissel, the esteemed owner of Whissel Realty Group, reveals an insider tip that can slash your interest rates by 1-3% below what banks typically advertise. This secret, known as a "buy down," is not widely known among Realtors and lenders but is a game-changer for home buyers in today's market.

The Buy-Down Explained

A buy-down is a simple yet effective approach where you negotiate to lower your mortgage rate below the current market rate. In times of soaring interest rates, such as what we're witnessing now — the highest in decades — innovative solutions like buy-downs are vital.

How Does a Buy-Down Work?

In a buy-down scenario, the process involves asking the seller for a credit, which is then used to reduce the mortgage rate. While this might seem unlikely in a competitive market, the current slowdown in real estate activity, especially in Q4 of 2023, creates an advantageous position for buyers. With reduced competition, you can afford to be selective and assertive in your offers.

Types of Buy-Downs

There are three main types of buy-downs:

  1. One-Year Buy-Down: Reduces the rate by 1% for the first year.

  2. Two-Year Buy-Down (2-1): Offers a 2% reduction in the first year and 1% in the second.

  3. Three-Year Buy-Down (3-2-1): The most aggressive, cutting rates by 3%, 2%, and 1% over three years.

Considering current rates in the mid-sevens, a 3-2-1 buy-down could bring your rate down to the fours in the first year, followed by mid-fives and mid-sixes in the subsequent years.

The Refinancing Advantage

If interest rates drop within this period, refinancing is always an option. The beauty of the buy-down is that if you refinance within the buy-down period, the savings can be applied to the principal balance of the mortgage.

Why Consider a Buy-Down in San Diego?

San Diego's real estate market is uniquely positioned for buy-down strategies. As the market cools and buying competition decreases, sellers may be more open to providing credits for buy-downs. This strategy not only makes homeownership more accessible but also provides flexibility in managing mortgage expenses over time.

Whissel Realty Group: Your Buy-Down Experts

At Whissel Realty Group, we specialize in these buy-down strategies. Our team understands the nuances of the San Diego market and can guide you through this process. If your current agent or lender is unfamiliar with buy-downs, it might be time to consider a switch.

Ready to Explore Buy-Downs?

If you're considering purchasing a home in San Diego and want to explore the buy-down option, Whissel Realty Group is here to assist. Our expertise in this area can be a significant advantage in securing your dream home at an affordable rate.

Contact Us

For more information or to start exploring buy-down options, contact Whissel Realty Group. Shoot us a text or give us a call at the number below. Let's make your San Diego home-owning dream a reality with advantageous mortgage rates. (619) 639-4012


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