Posted on: 05th May, 2010 11:21 am
If you were doing a 1/0 buydown on $100,000 loan @6% with 2 pts., how much would the buydown cost?
The payment for $100,000 at 6% is $599.55
The payment for $100,000 at 5% is $536.82
The difference is $62.73 monthly and 12 month total is $752.75
The buydown cost is $752.75
(Could be pennies less based on crdit for time value of money)
The payment for $100,000 at 5% is $536.82
The difference is $62.73 monthly and 12 month total is $752.75
The buydown cost is $752.75
(Could be pennies less based on crdit for time value of money)