Rate Buy-down Matrix
What: A rate buy-down lets you ‘purchase’ a lower interest rate for your Client by trading BPS of (lower) commission in return for BPS of (lower) rate.
Why: It’s best used as an incentive tool for retaining a Client who may be shopping around. XCEED offers very competitive commission to Friends of XCEED so why not pass some along to your Client?!
How: It’s simple! Just email your XCEED Underwriter when you submit your deal number and include the deal and the interest rate you want. We’ll respond with the dollar amount of commission you can expect to earn with that rate.
Please refer to the chart below for buy-down rates and example calculations.
| Amortization 25 Years | |
|---|---|
| Term 3 Years | 2.256 |
| Term 5 Years | 3.122 |
Mortgage Term: 3-years Mortgage Amortization: 25-years Product / Commission: XCEED Super PRIME / 80 BPS Mortgage Amount: $250,000 Original Interest Rate: 2.84% Interest Rate after rate buy-down: 2.74% Broker Commission before 10 BPS rate buy-down: $1,500 Broker Commission after 10 BPS rate buy-down: $936
Mortgage Term: 5-years Mortgage Amortization: 25-years Product / Commission: AAA XCEED XTRAGREENTM / 135 BPS Mortgage Amount: $300,000 Original Interest Rate: 3.04% Interest Rate after rate buy-down: 2.84% Broker Commission before 20 BPS rate buy-down: $4,050 Broker Commission after 20 BPS rate buy-down: $2,165