How a seller-paid rate buydown works
How a seller-paid rate buydown works
A seller-paid rate buydown is a financial arrangement in a real estate transaction where the seller contributes funds to temporarily reduce the interest rate on the buyer's mortgage loan. This is typically done to make the property more attractive to potential buyers, especially in situations where the real estate market is favoring buyers or where interest rates are rising.
Here's how a seller-paid rate buydown works:
Initial Interest Rate: When a buyer secures a mortgage to purchase a property, the lender determines an initial interest rate based on prevailing market rates and the buyer's financial profile.
Seller Contribution: In a seller-paid rate buydown, the seller agrees to provide a certain amount of money to the buyer or the buyer's lender. This money is typically used to "buy down" the interest rate on the mortgage loan for a specified period, often the first few years of the loan.
Reduced Interest Rate: The funds provided by the seller are used to subsidize the buyer's mortgage interest rate. As a result, the buyer pays a lower interest rate on their mortgage during the specified period covered by the buydown.
Temporary Benefit: The reduced interest rate is temporary and typically applies for the agreed-upon period, after which the interest rate will revert to the original rate determined by the lender.
Lower Monthly Payments: The lower interest rate resulting from the buydown leads to reduced monthly mortgage payments for the buyer during the specified period. This can make homeownership more affordable in the short term.
Market Incentive: Sellers may use a seller-paid rate buydown as an incentive to attract buyers, especially in a buyer's market or when interest rates are rising. By offering this financial incentive, sellers can make their property more appealing and stand out from other properties on the market.
- It's important to note that while a seller-paid rate buydown can provide short-term financial relief for the buyer, it's not a permanent reduction in the interest rate. The buyer needs to be aware that their mortgage payments will increase once the buydown period ends and the interest rate returns to its original level.
- Additionally, the terms and conditions of a seller-paid rate buydown can vary, and it's essential for both buyers and sellers to carefully negotiate and outline these terms in the purchase agreement.
In summary, a seller-paid rate buydown is a strategy used by sellers to attract buyers by offering a temporary reduction in the buyer's mortgage interest rate, resulting in lower monthly mortgage payments for a specified period. Contact Ted Daigle to guide you through the process! (337)945-6763
Testimonials
"
Ted Daigle was a great help in purchasing my first home. I had a lot of questions that he was patient and thorough in answering. I never felt like I wasn’t his first priority, as he always seemed to be on top of things. I have already referred several family members to him and will definitely call Ted again for future real estate purchases.
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- Byron
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Working with Mr. Daigle was a very good experience. Ted takes his job seriously as well as his clients. Ted is very flexible and understanding in which you will experience while working with him. He is also a personable person and easy to like. Ted also looks out for the best interest of his clients in which I haven’t seen with a lot of other real estate agents I have worked with. I strongly recommend Ted Daigle as a real estate agent if you are buying or selling a home.
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- Joshua Mckinsey
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If you are looking for someone to take care of your real estate needs in the Lafayette area, Ted Daigle is your man! When we decided to look for a house, we contacted Ted with our wants and needs. He took it from there. Not being from the area, communication was key and Ted never let us down. He was always quick to respond to our questions and concerns. Throughout the entire process, he made sure that all of our issues were addressed and that we were completely satisfied. He found us just the house that we wanted and went above and beyond in handling the sale. We highly recommend Ted and his staff! You will not be disappointed!
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- Diane Crow
"
We are interested in moving to the Lafayette area and Ted Daigle has been everything we would want as a Realtor. Efficient, knowledgeable and helpful with every aspect of guiding a person to fulfilling their dreams of buying a new house.
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- Carrol
"
Ted is everything described in his bio and more High energy, very well informed Very well prepared
He really does his homework and personalizes his selections, tailored specifically for your needs
His laid back attitude makes for a wonderful no pressure experience a We will definitely be buying from him Keep up the great work, Ted!
"
- John
"
We just purchased our first brand new house and I’m positive it wouldn’t have happened without Ted! He is very attentive and answered all our questions, even the ones I sent at night or on weekends. I would highly recommend Ted to anyone who is looking or even thinking about purchasing a new home!
"
- Jamie
"
Ted is a great agent! Highly recommend! Very knowledgeable, provided quick response and was really engaged to help us to sell and purchase our home. He is not just an awesome professional but also a nice friend. Glad we had the opportunity to work with him and his team!
"
- Patricia
"
As a first time buyer, Ted made the effortless. He answered any questions I had and provided me with everything needed to help me along with the process. I highly recommend him if in the market for a new home.
"
- Jordan Henry
"
Ted was AWESOME!!! He made the process very easy, no question was a dumb question, and he had a lot of patience. He also wasn’t a nag, he waits for you to reach out to him. Glad I got a chance to work with him and not to mention his bbq sauce is bomb!!!
"
- Alicia M.
"
Ted Daigle is an awesome real estate agent! He is very knowledgeable and so easy to work with. The process of selling our Lafayette property went smoothly because of him. We highly recommend Ted!
"
- Hollier Farms
"
My fiancé and I are first time homebuyers and Ted made our home buying experience stress and smooth as possible. We have a two-year-old daughter and she loved him as well. The home buying process can be very stressful and we didn’t feel any of that with Ted as our realtor. Any question we had he made sure he went out his way to give the correct information to us and broke it down for us to understand. He is very sweet and glad we chose him to be our realtor! We couldn’t see our selves dealing with anyone else! Definitely 5 star service!!!!
"
- Keyaunana Carpenter
"
If you’re looking for a realtor that is a hustler, get Ted! He was non-stop showing me homes and sending me homes daily. If there was a home that I liked and wanted info on his words were “I’m on it!” I will forever be grateful for the amount of time and effort he put into finding a home for me!
"
- Jennifer Mire
"
Ted Daigle has been a great realtor so far we are in the process of buying our first home he is so patient with us and very knowledgeable. We toured a lot of homes and he was very helpful and understanding to find our wants and needs in a home. We highly recommend Ted to anyone looking for a realtor that is very patient not pushy and makes the home buying process easy.
"
- Kaley
"
Ted is an AMAZING! Get with him if you need to find a home. He is very responsive. Very caring and keep you uplifted about buying a home after getting frustrated. He always just one phone call away. If I asked about a home he works on it right away.
"
- Kiersten Mitchelle
"
Ted is a down-to-earth and truly caring person that is an expert in his field. As first-time home-buyers, we felt like we took a crash-course with Ted's excellent advice following us as well as guiding us all the way through. Ted is also a very patient man. With all of the multiple things that we learned as we went, occasionally we changed our minds about the size of the yard we'd accept or the age of the house or the number of renovations we were willing to make, and Ted stuck by us as we switched it up multiple times. He provided valuable advice and was always willing to answer my questions and my husband's questions no matter how small or inconsequential. Within a day he would get back with an answer or at the least a contact/resource to help us move forward. He had good ideas for inspectors, costs, issues we might face, and an understanding of just about every neighborhood in the Acadiana area, from resale values to noisiness and traffic issues, and a number of other knowledgeable things that only a person who is committed to his work and has a number of years experience would know. Finally, Ted was honest - and let's face it, in this world that is priceless. So don't even question it: Go with Ted - he works for his living very hard because he works for his clients day and night, with the best intentions, the best resources, and the best attitude one could hope for during the difficult process of buying home. I would definitely use his services again. Team Ted all the way.
"
- Jonnie Thompson
"
Ted is an absolutely wonderful guy! We were first-time homebuyers and he was super patient with us. Ted explained everything very well, helped us through the whole process and was super professional. HIGHLY recommend him! He was very knowledgeable and quick to respond to everything! Definitely one of the best!
"
- Aprel
"
Ted is everything a realtor should be (and so much more!). First, he makes the whole process extremely smooth and easy. This includes things like paperwork, finding bids, etc., but it also includes how likable of a guy he is, which makes the process more fun. Second, he goes above and beyond his job duties. (After closing, he helped the seller move her flowers/plants out of the yard: he was worried about her getting heat stroke, and he know this would mean the yard would be 100% mine sooner, rather than later [I had given the seller an extension for removing plants/flowers.]
Third and most importantly, he actually has the client’s best interest in mind! Other realtors will prefer a high sales price, even if they are representing the buyer since this increases their commission. By contrast, Ted worked so hard to get me the best deal possible! This meant he made less money, but that doesn’t matter to him, because he truly wants the best for his clients.
Had I chosen a different realtor (or none at all), I would have ended settled for an overpriced, problematic house. Thanks to choosing Ted, I ended up purchasing my dream home and paying less for it than the worse alternatives I would have settled for.
"
- Jesse Saloom
"
What an incredible, personable, and amazing realtor to work with !!!!! He made buying a house fun!!! He worked with me for about a year until I found what I wanted!
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- Matt Ackman
"
As a first time buyer, Ted made the effortless. He answered any questions I had and provided me with everything needed to help me along with the process. I highly recommend him if in the market for a new home.
"
- Jordan H.
"
Ted Daigle is everything described in his bio and more High energy, very well informed Very well prepared. He really does his homework and personalizes his selections, tailored specifically for your needs.
His laid back attitude makes for a wonderful no-pressure experience. We will definitely be buying from him.
Keep up the great work, Ted!
"
- zuzser
"
Ted is a stand-up guy who is willing to help anyone. Very informative, helpful, and passionate. Definitely not one of those realtors who hunt you down and won’t stop calling you. He’s very nice, patient, resourceful, and punctual when responding to inquiries. Myka is also sweet as pie, resourceful, and has all of the paperwork ready to sign for everything. Really great team, definitely my realtor for life.
"
- Raven
"
Many thanks to Ted and his staff for a great experience in our search for a new home. Ted and Myka work very hard to be helpful, informative and take a personal interest in you and your families needs in the search and purchase of a home. I highly recommend this team of real estate professionals.
"
- James
"
Ted has made the home buying process easy and less stressful. I’m so glad we have had the opportunity to work with a realtor with the experience and knowledge that Ted has. I would highly recommend working with him!
"
- Shelby
"
Ted is an absolutely wonderful guy! We were first-time homebuyers and he was super patient with us. Explained everything very well, helped us through the whole process and was super professional. HIGHLY recommend him! He was very knowledgeable and quick to respond to everything! Definitely one of the best!
"
- Aprel
"
When we decided to put our home up for sale, there was no question that Ted Daigle with EXP Realty would be our listing agent. We have known Ted personally for many years and knew he would be the best choice based on his personality, professionalism and his knowledge of the local real estate industry. There was no doubt that Ted with EXP Realty stood out as the best our area has to offer: their organic rankings are excellent (meaning people find listings on his site easily), their social media presence was strong, and I could tell he put a lot of work into his listings.
We spoke with Ted and then met with him at our home. He spent ample answering our questions, providing objective data regarding how many homes they sell, how long their listings typically stay on the market and providing tons of info on comps in the area. Ted made the process incredibly easy and took extra steps many other Realtors don't (but should), like giving us staging tips, having professional photographs taken, and a lot more.
When we saw our listing we were blown away. The drone footage, video, and photography that he incorporated were priceless. His hard work and knowledge of what it takes to sell a home really paid off - our listing looked amazing and knocked out the competition. The first potential buyer that saw the property put in an offer.
Our house went under contract 7 days after we put it on the market at 1% under asking price. We accepted and Ted (and his assistant Myka, who was also incredibly knowledgable, friendly and helpful) walked us through every step of the closing process. It couldn't have been a more pleasant experience.
I've recommended Ted with EXP Realty to everyone I know. He's a true professional and just one of those guys that you would love to know. I realize it won't always be this easy to sell your home, but I think you'd be hard-pressed to find a better realtor.
"
- Paul B.
"
We had a great experience with Ted! We were searching for a second home from California and he was excellent in assisting us through the process from beginning to end. He was in constant communication day and night with us, and really made us feel taken care of through the entire transaction.
"
- Mike
"
Being a first-time homebuyer, there’s not much I knew going into the process besides for the countless hours spent on Zillow. Ted was an expert when it came to bringing all the dreams to real life. He took the time to walk through the process with me over the phone and made sure that I understood everything that was happening. A text or call was always answered. Trustworthy, dependable, and knowledgeable. I’d highly recommend working with Ted. The team he has is amazing as well!
"
- Jeff
"
When we decided to put our home up for sale, there was no question that Ted Daigle with EXP Realty would be our listing agent. We have known Ted personally for many years and knew he would be the best choice based on his personality, professionalism, and knowledge of the local real estate industry. There was no doubt that Ted with EXP Realty stood out as the best our area has to offer: their organic rankings are excellent (meaning people find listings on his site easily), their social media presence was strong, and I could tell he put a lot of work into his listings.
We spoke with Ted and then met with him at our home. He spent ample answering our questions, providing objective data regarding how many homes they sell, how long their listings typically stay on the market and providing tons of info on comps in the area. Ted made the process incredibly easy and took extra steps many other Realtors don't (but should), like giving us staging tips, having professional photographs taken, and a lot more.
When we saw our listing we were blown away. The drone footage, video, and photography that he incorporated were priceless. His hard work and knowledge of what it takes to sell a home really paid off - our listing looked amazing and knocked out the competition. The first potential buyer that saw the property put in an offer.
Our house went under contract 7 days after we put it on the market at 1% under asking price. We accepted and Ted (and his assistant Myka, who was also incredibly knowledgable, friendly, and helpful) walked us through every step of the closing process. It couldn't have been a more pleasant experience.
I've recommended Ted with EXP Realty to everyone I know. He's a true professional and just one of those guys that you would love to know. I realize it won't always be this easy to sell your home, but I think you'd be hard-pressed to find a better realtor.L
"
- Paul & Mimi Bellow
"
Ted M. Daigle did an excellent job for us. We saw a home in Ohio we wanted. I called Ted and he went to work. He recommended a cleaning service and personally did extra things in order to get home ready.
He went above his normal responsibility. Priced the home at appraisal value.
Calmed nervous questions, guided us though the process.
He is a credit to his industry.
"
- Rick
"
Great experience, great guy, highly recommend! Ted Daigle made the experience exciting as well as took a major load off of our shoulders while assisting with resources and paperwork. Would definitely recommend Ted.
"
- Greer
"
Ted is amazing! He is kind and honest. He did not pressure us to buy a home. He wanted us to have what we wanted. He is quick to answer questions and pointed out positive as well as things that we missed. I would definitely recommend him for those reasons and the ease of the home buying process!!
"
- Casey Soileau
"
Ted Daigle has been amazing through this journey! He was always open and willing to talk or answer questions and show houses, even on nights and weekends. Being a first-time homebuyer, he really broke down the home buying process for us and made sure we understood what was going on and why.
"
- Jeremy Burleigh
"
I'll just say, Ted, is amazing. He did an amazing job throughout this whole process. He is not just a real estate agent, he is a friend.
"
- Lakondra
"
Ted is an awesome real estate agent! He is very knowledgeable and so easy to work with. The process of selling our Lafayette property went smoothly because of him. We highly recommend Ted!
"
- Hollier Farms
"
This was my 3rd purchase but my very 1st as a single mom. Just as I was giving up, Ted Daigle showed up in armor and dagger.... well, it was actually a pencil, clipboard, and cellphone...and saved the day! This man changed my family’s life and did everything he could to secure my purchase and helped me make the greatest decision of this new chapter! He was the most truthful and honest realtor.... and MAN.. that I’ve ever worked that did not add in his own biases, change my decisions, nor pointed me in the wrong direction. Thank you, Ted!! You’re the best!
"
- Maria
"
My fiancé and I are first time homebuyers and Ted made our home buying experience stress and smooth as possible. We have a two-year-old daughter and she loved him as well. The home buying process can be very stressful and we didn’t feel any of that with Ted as our realtor. Any question we had he made sure he went out his way to give the correct information to us and broke it down for us to understand. He is very sweet and glad we chose him to be our realtor! We couldn’t see our selves dealing with anyone else! Definitely 5-star service!!!!
"
- Keyauana
"
My husband and I just closed on our dream home thanks to Ted. We were first time home buyers and didn't have a clue as to what was entailed in the home buying process. Ted reached out to me about a house I was looking at online. He agreed to meet up with us and show us the house. This was on a Sunday afternoon. He answered all of my questions and explained the process to me. He sent me written information as well as kept in touch by phone with anything he thought I need to know. He got to know my husband and I to help figure out the type of home we were looking for. He went above and beyond to help us find our dream home. He is definitely a go-getter. We absolutely love our home and we gained a new friend in the process.
"
- Cheryl
"
Great realtor and very knowledgeable of his market and other markets. Goes out of his way to help you. Very personable person.
Highly recommend him for real estate needs.
"
- Carrol Crow
"
Ted was AWESOME!!! He made the process very easy, no question was a dumb question, and he had a lot of patience. He also wasn’t a nag, he waits for you to reach out to him. Glad I got a chance to work with him and not to mention his bbq sauce is bomb!!!
"
- Adams
"
Ted is an excellent agent! Always ready to help. He’s very professional and ready to go the extra mile. I highly recommend using Mr. Daigle.
"
- Nick
"
Ted Daigle has made the searching process such a breeze! He is very patient and personable and truly listened to what we wanted and didn’t want. We had so many questions, being first time home buyers, and he answered them with ease. He walked us through the process and we have just made an offer on our first home with his help!
"
- Alexis
"
Ted has great knowledge of the local market and will work hard to get your home sold.
"
- Corey Simon
"
Buying a house is the first grownup thing my husband and I have done since getting married. Haha Ted helped us understand every part of the process and patiently explained the answer to every one of my many anxious questions. He helped us find a house we could afford so we can start saving for our future.
"
- Joanie
"
Ted is a down-to-earth and truly caring person that is an expert in his field. As first-time home-buyers, we felt like we took a crash-course with Ted's excellent advice following us as well as guiding us all the way through. Ted is also a very patient man. With all of the multiple things that we learned as we went, occasionally we changed our minds about the size of the yard we'd accept or the age of the house or the number of renovations we were willing to make, and Ted stuck by us as we switched it up multiple times. He provided valuable advice and was always willing to answer my questions and my husband's questions no matter how small or inconsequential. Within a day he would get back with an answer or at the least a contact/resource to help us move forward. He had good ideas for inspectors, costs, issues we might face, and an understanding of just about every neighborhood in the Acadiana area, from resale values to noisiness and traffic issues, and a number of other knowledgeable things that only a person who is committed to his work and has a number of years experience would know. Finally, Ted was honest - and let's face it, in this world that is priceless. So don't even question it: Go with Ted - he works for his living very hard because he works for his clients day and night, with the best intentions, the best resources, and the best attitude one could hope for during the difficult process of buying home. I would definitely use his services again. Team Ted all the way.
"
- Ryan W.
"
Ted is an AMAZING ! Get with him if you need to find a home . He is very responsive. Very caring and keep you uplifted about buying a home after getting frustrated. He always just one phone call away . If I asked about a home he works on it right away .
"
- Kiersten Mitchell
"
Ted has been great during our home buying and selling process!
He listed and sold our home in less than 24 hours and was very helpful and communicative throughout the entire process!
"
- Jacob Duhon
"
Ted Daigle is everything a realtor should be (and so much more!). First, he makes the whole process extremely smooth and easy. This includes things like paperwork, finding bids, etc., but it also includes how likeable of a guy he is, which makes the process more fun. Second, he goes above and beyond his job duties. (After closing, he helped the seller move her flowers/plants out of the yard: he was worried about her getting heatstroke, and he know this would mean the yard would be 100% mine sooner, rather than later [I had given the seller an extension for removing plants/flowers.]
Third and most importantly, he actually has the client’s best interest in mind! Other realtors will prefer a high sales price, even if they are representing the buyer, since this increases their commission. By contrast, Ted worked so hard to get me the best deal possible! This meant he made less money, but that doesn’t matter to him, because he truly wants the best for his clients.
Had I chosen a different realtor (or none at all), I would have ended settled for an overpriced, problematic house. Thanks to choosing Ted, I ended up purchasing my dream home, and paying less for it than the worse alternatives I would have settled for.
"
- Jesse Saloom
"
The moment we first decided to purchase a home all the way to closing day Ted Daigle walked us through it all. He helped with every question and concern we had. If you want a stress free worry-free home purchase experience I recommend giving Ted Daigle a call.
"
- Lucresha
"
Being a first-time homebuyer, there’s not much I knew going into the process besides for the countless hours spent on Zillow. Ted was an expert when it came to bringing all the dreams to real life. He took the time to walk through the process with me over the phone and made sure that I understood everything that was happening. A text or call was always answered. Trustworthy, dependable, and knowledgeable. I’d highly recommend working with Ted. The team he has is amazing as well!
"
- First-Time Buyer
"
I can't say anything that hasn't already been said about Ted and his staff! He is willing to go the extra mile to make sure that you are satisfied with whatever it is you are looking for. I would definitely recommend him to anyone looking to buy or sell.
"
- Tavorus Robinson
"
My fiancé and me felt relieved when we found Ted Daigle, we had an ugly experience with a previous agent and Ted came to save the day. He listens to our concerns and has answers for all of our questions. He even works around your work schedule. I definitely recommend Ted for those in the process of buying a home.Less
"
- Skylar
"
Ted Daigle is the man! I called him about a property I was interested in and the next thing I know it was mine!! Ted loves what he does. Thanks for everything!
"
- Jared
"
Ted is definitely the realtor to go with. He is genuine, honest, and kind. He doesn't try to push you into anything you aren't sure of and even points out things you may miss. Amazing experience!
"
- Casey Soileau
The data relating to real estate for sale on this website comes in part from the IDX Program of the REALTOR Association of Acadiana MLS. This IDX information is provided exclusively for consumer's personal, non-commercial use. It may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable but is not guaranteed accurate by the MLS.
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