Sevier County Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Oct. 25, 2022

2-1 Buy Down - Lower you Interest Cost!

So, you are looking to get a home in East Tennessee, maybe the Smoky Mountains?  Let us help with a little tip that you may find attractive!  Read below about the 2-1 Buy down where you can enjoy an interest rate of 2% less during year 1 and 1% less during year 2 ... if you are a seller this may give you a great opportunity to attract a Buyer for your home! 

What is the new Product?  - "2-1 Buydown"
What is this exactly?  - Sellers may offer a "Credit" for Buyers as an incentive to buy their property over others they may be considering.  The Credit is equal to the interest charges for 2% of the rate in Year 1 of the loan and 1% of the Rate in year 2 ... the borrower's loan reverts to the NOTE Rate in Year 3.  
Here's an Example - NOTE Rate might be 6.75%, the "2-1 Buydown" allows for a 4.75% in Year one of the loan, a 5.75% in year 2 and the full 6.75% starting in year 3
Who gets the benefit?  - Everyone!  A seller in the current market may be entertaining a price reduction or possibly in addition to a reduction may be looking for an incentive to attract a buyer.  In addition or instead, a "2-1 Buydown" may provide a strong incentive to get this home sold!  
Buyers Enjoy a reduction of their NOTE Rate by 2% in Year 1 and 1% in Year 2 (Lower House Payments!) After 2 years, it may be attractive to refinance the loan to keep a lower rate!  A 2% Reduction on a $300,000 loan amount is approximately $6,000* in year 1 and almost $3,000 in year 2.   
*Precise calculations will be provided for each actual loan scenario. 
How do I present the proposal in an offer? - In Special Stipulations - "Seller to provide a credit in the amount of $X,XXX for the Buyer to obtain a 2-1 Buydown from Lender"
How do I determine the exact amount for my offer?  - Contact Dennis, Seth or Corey to provide the precise amount for your specific client and offer. The amount is equivalent to the interest cost for 2% in year 1 and 1% in year 2 of the loan amount. 
  1. Sellers may offer the credit to fund the interest rate buy-down.  The amount offered when combined with all other Seller Concessions cannot exceed maximum seller concessions depending on loan type.  Contact me for additional details.
  2. Loan Types allowed for 2-1 Buydown - Conventional, FHA and VA
  3. Buyers must qualify on NOTE Rate
Peoples Home Equity - DJKTeam is always working to find ways to add value and expand your offerings to Buyers and Sellers!  Contact me at the number below for more information!  Buyers may submit an application by phone or online at the Apply Now link below! 


Dennis Knisley
Producing Branch Manager | Retail
|  NMLS 923545
P: (865) 934‑5454
|   F: (865) 316‑6958
Apply Now
Cardinal Financial Company, Limited Partnership DBA Peoples Home Equity | NMLS 66247
150 North Seven Oaks Drive, Knoxville, TN 37922
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Jan. 5, 2022

Curious About Sevier County Real Estate?

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Curious about Sevier County real estate? So are we! Every month we review trends in our real estate market and consider the number of homes on the market in each price tier, the amount of time particular homes have been listed for sale, specific neighborhood trends, the median price and square footage of each home sold and so much more. We’d love to invite you to do the same!

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You can sign up here to receive your own market report, delivered as often as you like! It contains current information on pending, active and just sold properties so you can see actual homes in your neighborhood. You can review your area on a larger scale, as well, by refining your search to include properties across the city or county. As you notice price and size trends, please contact us for clarification or to have any questions answered.

We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and Sevier County real estate market better.

Posted in Market Updates