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Buydowns

All articles tagged with #buydowns

D.R. Horton's Costly Missteps Send Stock Tumbling

Originally Published 2 years ago — by WOLF STREET

D.R. Horton's stock plummeted 9.2% after revealing a $65 million mark-to-market charge for a hedge gone awry due to the unexpected costs of mortgage-rate buydowns, on top of regular buydown costs, caused by the massive swing in mortgage rates during the quarter. The company increased the use of buydowns, with 70% of its deals made with mortgage-rate buydowns in Q4, and plans to continue using them to stay competitive. The plunge in mortgage rates in November and December caused the company's hedges on those buydowns to lose market value, triggering the charge.

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"Maximizing Savings and Opportunities in Today's Mortgage Market"

Originally Published 2 years ago — by Daily Mail

As mortgage rates soar, more home buyers are negotiating mortgage buydowns, a financial technique that can shave thousands of dollars off a buyer's loan repayments. Buydowns involve a seller agreeing to pay a lump sum of money that is then used to reduce a buyer's interest rate over a set period of time. These negotiations are struck when a home has been on the market for a long time and sellers are struggling to find a buyer.

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