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Buy downs on Opelika homes?

Updated on December 28, 2009
Opelika: "The improved sidewalks"
Opelika: "The improved sidewalks"

Buying Opelika homes

Finding a good place to live in is one of the most difficult things to do in today’s age; and it is a difficulty that is answered by Opelika homes. An affordable, fully-functioning house found in a good-natured neighborhood is something that is of rarity in today’s age. What with the continuously tumbling economy and the trend of rising prices of real-estate property makes it almost unimaginable for most people to be able to own and invest in a good home without having to sacrifice a good deal of monetary resources. That is the common train of thought among most people today. But what some people do not realize is that there are affordable, fully-functioning houses found in a good-natured neighborhood available today. These are Opelika homes. And is a way for you to afford them even with a tight budget. That way is called a “buy-down.” 

How does it go?

There are several kinds of buy-downs. The most usual of buy-downs is the “3-2-1.” The 3-2-1 buy downs starts with the builder paying the lender an amount to serve as an up-front fee. The purpose of the up front fee is to lessen the interest rate on your mortgage by 3 percent in the primary year, 2 percent in the secondary year and 1 percent in the tertiary year thus the title 3-2-1. After the said period, the buy-down will meet its end. This means that you will have to pay the full mortgage due for each month. This method can allow you to purchase one among many Opelika houses.  

Opelika Train Depot
Opelika Train Depot

Positive and negative effects of buy downs in purchasing Opelika homes

Buy-downs are favorable to the buyer of Opelika homes because of its lessening effect on the monthly mortgages due in the early years of owning the house. This allows you to save money for other necessities or borrow a loan from bank.

Despite that, buy-downs still has its own disadvantages. There may be some instances when buy-downs can be less advantageous than lower home prices. This is largely dependent on the “structure” and “value” of the buy-down. It can also be affected by the quantity of the price reduction and the intended duration of your stay in the house. A reduced price could lessen your property tax in some districts while a buy-down will not have any effect on your property tax. This is good point to consider when you intend to buy one of the Opelika homes available in the market.


"the improved sidewalks" © [Diamondback Sturgeon / Flickr]

"Opelika Train Depot" © [Diamondback Sturgeon / Flickr]


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