A unique offering is now available – a temporary rate buydown – to lower your interest rate and monthly payment in years one and two of your new mortgage.
This is a negotiated cost to be paid by the seller or builder – and your loan rate is reduced for an initial period.
This temporary rate buydown lowers your monthly payment and leaves more cash on hand each month. That difference is yours to save or put to good use around your new home.
There are no surprises…the rate buydown is adjusted each year by a set amount. It diminishes gradually until it settles at the original rate with no reduction of mortgage payment at the end of the initial period.
Buydown Example
Here’s an example of a $400,000 mortgage amount with a two-year and one-year buydown option.
Assuming an interest rate of 6%, the principal and interest payment would be $2,398.20 on a 30-year fixed mortgage…
And here’s what those payments would be with the buydown options:
As you can see, the savings are quite significant – nearly $500/month in year one and an overall savings of nearly $9,000 in years one and two!
Reach Out To Me For More
This temporary rate buydown is available on Conventional, FHA, VA, and USDA loans. You can contact me here and I would be happy to run multiple scenarios for you, as well.
