Temporarily lower your interest rate for one, two or three years
We expanded our temporary rate buydowns to deliver even bigger savings of up to 3% for our clients. Choose from 3-2-1, 2-1, 1-1 and 1-0 temporary rate buydowns!
Unlock Affordable Homeownership with our Seller-Paid Buydown Programs. Our exclusive buydown programs offer homebuyers the chance to lower their mortgage interest rate for the first one, two, or three years of their loan. With interest rates on the rise, this option helps keep homeownership within reach, even in a changing market. Plus, if mortgage interest rates drop in the future, buyers have the option to refinance into a lower rate, saving on interest expenses. Don't miss out on this opportunity to save on your mortgage payments and achieve your homeownership goals with our seller-paid buydown programs.
A temporary buydown allows some of the interest to be prepaid by the seller on a fixed-rate mortgage in exchange for a discounted interest rate for 1, 2, or 3 years of the mortgage, after which the interest rate reverts to the full rate for the reminder of the loan. This arrangement is typically paid for through funds by the seller/builder/lender. Since the interest rate is lower during this time, the monthly mortgage payments are more affordable.
Unlock Significant Savings with a Buydown Mortgage: Get a lower interest rate for the first one, two, or three years of your home loan, leading to reduced monthly mortgage payments. A buydown can save you thousands of dollars upfront, offsetting initial housing costs and freeing up funds to pay down debt, boost savings, or invest in home renovations. It's a smart financial move that can also help with paying off credit card debt or building an emergency fund. Request a temporary buydown as part of your negotiation process with the seller, just like other concessions.
Real estate agents and builders can benefit from offering a temporary buydown as an alternative to reducing the list price, making the property more affordable while providing attractive buyer incentives in a competitive buyer's market.
Get the extra flexibility with a lower monthly payment with a Temporary Rate Buydown to lower your interest rate at the start of the loan.
Below is an example of the potential savings on a 3-2-1 seller-paid buydown:
Getting concessions from a seller who wants to sell quickly? You might be in the ideal position to use these toward a Temporary Rate Buydown to save on your interest rate at the beginning of your loan, for a more-comfortable mortgage payment.
A temporary buydown allows some of the interest to be prepaid on a fix-rate mortgage in exchange for a discounted interest rate for the first two years of the mortgage, after which the interest rate reverts to the full note rate for the reminder of the loan. This arrangement is typically paid for through funds escrowed by the seller. Since the interest rate is lower during this time, the borrower’s monthly mortgage payments are more affordable.
Temporary buydowns funded by the seller on the following loan programs:
Primary home purchase for FHA, VA, USDA and both primary and secondary home purchase for Conventional programs.
For example, with a 2/1 temporary buydown, there would be a temporary reduction below note rate of two percent (2%) during the first year and a reduction below note rate of one (1%) during the second year of the loan, after which the interest rate reverts to the full note rate for the remainder of the loan. The interest rate change from years one to two is automatic and you are not required to requalify for the loan.
For example, a $400,000, 30-year loan with a standard interest rate of 5%, the buyer would be expected to pay an interest rate of 3% the first year, 4% the second year and 5% from years 3 – 30.
The buyer would save approximately $8,380 in interest, so the buyer should expect the total cost of the 2-1 buydown to be in that same ballpark.
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