Buy-Down
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10-26-2023, 04:55 PM
(This post was last modified: 10-28-2023 12:00 AM by Albert Chan.)
Post: #5
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RE: Buy-Down
(10-26-2023 03:48 PM)Albert Chan Wrote: Note: based on post#8, interest is compounded monthly. Redo calculations. I might have mis-understood how buy-down work. It might be much simpler. Buyer pay above annual payment, but the builder helped out for a while. First 3 years, without builder's help: n=3*12, i=15%/12, pv=100e3, pmt=-1264.44 --> fv = -99348.53 First 3 years, buyer subsidized rate = 12% n=3*12, i=12%/12, pv=100e3, fv=-99348.53 --> pmt = -1015.12 Builder fill-in the difference: 1264.44 - 1015.12 = 249.32 Loan rate were not really lowered (bank still get 15%), just seems so. Simplest is lower loan amount! Why do they make this complicated? Is it intentional, to get more fees ? |
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Messages In This Thread |
RE: Buy-Down - EdS2 - 10-26-2023, 07:49 AM
RE: Buy-Down - SlideRule - 10-26-2023, 11:41 AM
RE: Buy-Down - Albert Chan - 10-26-2023, 03:48 PM
RE: Buy-Down - Albert Chan - 10-26-2023 04:55 PM
RE: Buy-Down - Maximilian Hohmann - 10-26-2023, 06:38 PM
RE: Buy-Down - SlideRule - 10-26-2023, 08:49 PM
RE: Buy-Down - SlideRule - 10-27-2023, 12:55 PM
RE: Buy-Down - Albert Chan - 10-27-2023, 04:30 PM
RE: Buy-Down - Albert Chan - 10-27-2023, 06:17 PM
RE: Buy-Down - Albert Chan - 10-28-2023, 01:01 AM
RE: Buy-Down - dm319 - 10-28-2023, 12:44 PM
RE: Buy-Down - SlideRule - 10-28-2023, 02:21 PM
RE: Buy-Down - SlideRule - 10-27-2023, 05:46 PM
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