During the past couple of years, the housing market has been red hot and buyers often had to pay well above the asking price to have their offer accepted. Additionally, the transaction was all on the seller's terms. And while the housing market is still strong today, it has cooled off, giving buyers the opportunity to negotiate better price and terms.
Although buyers have more negotiating power today, mortgage rates have risen. One way to navigate through this time is to use a program called a 2/1 buydown, which offers lower interest rates for the first couple of years. Instead of negotiating a lower price from the seller, you can request the seller to pay the cost of a 2/1 buydown. This gives you the opportunity to get the home of your dreams at a payment that is much more affordable, with the opportunity to refinance in the future to a very attractive rate.