How would you spend $15,000 to be spent at the closing of the loan as a buyer bonus.?

Question

The house we are buying comes with a $15,000 buyer bonus which the lender says can only be used to pay our closing costs and to buy down the interest rate on our loan. How do I know if the money is being used wisely?

Answer 1

go to China!

Answer 2

Congratulation to America Dream!

Well, first if that is a fixed up or an old house need to be repaired some areas, you might need to use this15k fund in this issue.

Second, as a countributor already mentions about buy down interest rate, this is also a good idea. if you got so high an interest rate that make you are uncomfortable  to afford a payment each month.

Third, You migh use this for a closing cost. Ask the Agent or Lender office, how much your clsoing cost?

Good Luck!.

QL

Answer 3

Buying down the interest rate is always a good thing. It allows you to reduce your monthly payment. Ask your mortgage company to show you the different scenarios using various interest rates. Over 15 to 30 years buying down your interest rate really pays off. If your mortgage company is honest with you and shows you what you ask then you can see in black and white on paper that the money really is being used wisely.