If you are financing a home, your interest rate plays a major part in your decision-making process. It can be the difference between a comfortable mortgage payment and a payment that causes monthly stress to your finance and your family.
We understand how important even a half-percent can be, and have created our own framework for ensuring that you get the exact home that you want, while also having a payment that fits your budget comfortably. By donating a portion of our contractor fee to concessions during your loan finalization, we can help reduce your interest rate by as much as 2%, That's HUGE!
To put it into perspective, consider the following example from a previous build:
A home-owner, Let's call them Mr. & Mrs. Jones, were building a home which was estimated to be valued at $500,000 upon completion.
Their original loan was going to be structured like this...
|
Standard Loan for $500K Home Build |
|
|
Build Cost |
$500,000 |
|
Cash To Close |
$66,845.51 |
|
Loan Amount |
$450,000 |
|
Interest Rate |
7.000% |
|
Term |
30 Yr |
|
Payment |
**$3,550.11 |
This loan payment was slightly out of the Jones's comfort zone, so they were considering 3 different options to reduce the cost of the build:
|
Alternative Builder $15,000 Price Drop |
Best Homes Sponsored Permanent Buy Down |
Best Homes Sponsored 2/1 Buy Down |
|
|
Build Cost |
$485,000 |
$500,000 |
$500,000 |
|
Cash To Close |
$65,122.71 |
$66,799.27 |
$66,722.22 |
|
Builder Contribution |
$0 |
$15,000 |
$15,000 |
|
Loan Amount |
$436,500 |
$450,000 |
$450,000 |
|
Interest Rate |
6.990% |
6.250% |
5.000% |
|
Term |
30 Yr |
30 Yr |
30 Yr |
|
Payment |
**$3,455.67 |
**$3,326.98 |
**$2,971.95 |
|
Savings (Per Mo) |
$94.44 |
$223.13 |
$578.16 |
|
Savings (36 Mth) |
$3,207 |
$10,209 |
$13,922 |
In the end, the Jones's choice was very clear, and they chose to build with Best Homes. This example is a perfect piece of informational content that shows how important it is to choose a builder who keeps you informed and provides value through knowledge and ethical practices.
We believe that an informed buyer is an empowered buyer!
Your dream home should be everything that you want, including a payment that is sustainable and affordable, that’s why Best Homes has dedicated ourselves to serving our customers best interests and acting as their guide through the entire home building process.
You shouldn’t have to sacrifice quality or options in your dream home, and at Best Homes we won’t make you!
