Lower your monthly payments using our temporary mortgage rate buydown program. This program offers buyers reduced rates and lower monthly payments for 1-3 years at the beginning of their loan term. The savings must be provided by the seller or builder, with no additional cost to the buyer.
A Temporary Buydown loan decreases the monthly payments for homebuyers during the initial year, and in some cases extends this benefit to the first two or three years. Rather than starting with the full monthly mortgage payments, buyers make discounted payments for a specified period.
This loan program is a great way to settle into a new mortgage – especially for first-time homebuyers! Start saving money the first few years of your loan to put towards your new home.
During the Temporary Buydown period, the borrower does have to have a lower effective rate, however, for qualification processes, the borrower must qualify at the undiscounted note rate.
No, they cannot.
There is no additional fee to use the Temporary Buydown program. However, the funds that are subsidizing the temporary lower monthly payments are collected upfront at closing and put into an escrow account (essentially, the interest for the buydown period is being prepaid). These upfront costs are typically paid for by the seller or the home builder at closing in the form of a concession.
The 3-2-1 Temporary Buydown is a mortgage loan option in which the seller or builder buys down the interest rate for the first three years of the loan. In year one, the interest rate is 3% less than the original. In year two, the interest rate is 2% less. In year three, the interest is 1% less. Years 4-30 are the original locked fixed rate.
A 2-1 Temporary Buydown is a mortgage loan option in which the seller or builder buys down the interest rate for the first two years of the loan. In year one, the interest rate is 2% less than the original locked rate. In year two, the interest rate is 1% less. Years 3-30 are the original locked fixed rate.
A 1-1 Temporary Buydown is a mortgage loan option in which the seller or builder buys down the interest rate for the first two years of the loan. Years one and two, the interest rate is 1% less than the original locked rate. Years 3-30 are the original locked fixed rate.
A 1-0 Temporary Buydown is a mortgage loan option in which the seller or builder buys down the interest rate for the first year of the loan. The interest rate is 1% less than the original locked rate for year one, and then years 2-30 are the original locked fixed rate.
Certain restrictions may apply. Subject to interested party contribution limits. This is for informational and educational purposes only and not an offer to lend or extend credit. Subject to credit and income approval.
Terms and conditions are subject to change pending agency and investor guidelines.
