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Loan costs do matter !

 

Lets assume you are trying to sell a $400,000 home.

A potential buyer shows up who will be able to put down $100,000 and finance $300,000


At an interest rate on a 30 year loan of 7.25% the monthly principal and interest would be $2,047

 If a different mortgage lender is charging 7.50% then the property must come down in price to approximately $292,500 to keep the monthly principal and interest at $2,045 

That’s a drop in the selling price of $7,500 !


Of course, if your representing the buyer that difference can get them an additional $7,500 in value in a home !

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