Buyer Advantages

• The program provides you with a permanent interest rate buydown.
• Preferred Financing significantly reduces the monthly mortgage payment as a result of obtaining a below-market interest rate.
• You may qualify for a larger home as a result of the preferred financing.
• The program creates an opportunity for you if cash reserves are an obstacle.

Seller Advantages

• Preferred mortgage rate financing sets your home apart from other homes on the market.
• Home showings increase due to a higher level of interest from homebuyers.
• The target market expands as a result of more people qualifying due to lower interest rates.
• Less negotiating on price and contract terms occur when the seller funds preferred financing contingent upon receiving a full price offer.

Traditional
30-Year Fixed Loan

Sales Price: $389,900
Down Payment: $78,000 (20%)
Loan Amount: $311,900
Interest Rate: 5.50%
APR: 5.59%
Term (in months): 360
Principal & Interest: $1,770.93
Total Estimated Monthly Payments: $2,367.25
Estimated Closing Costs: $1,272
Estimated Prepaids/Reserves: $2,493.97
Cash to Close: $81,765.97

Rate Relief
30-Year Fixed Loan

Sales Price: $389,900
Down Payment: $78,000 (20%)
Loan Amount: $311,900
Interest Rate: 4.375%
APR: 4.45%
Term (in months): 360
Principal & Interest: $1,557.27
Total Estimated Monthly Payments: $2,153.60
Estimated Closing Costs: $1,272
Estimated Prepaids/Reserves: $2,349.77
Cash to Close: $81,621.77