Temporary Rate Buydown

What is a Temporary Buydown?

A Temporary Buydown is a meaningful temporary reduction to your mortgage payment for up to the first few years of the fixed mortgage term. Available on conventional loans and purchase home transactions only, this Temporary Buydown is achieved when the seller, builder or lender provides a seller concession (credit) equal to the buyers temporary buy down interest savings. Essentially, that concession pays for a portion of the monthly interest payment, then when added to you reduced lower mortgage payment, the combination of these two fully satisfies the required monthly mortgage payment obligation. 

Benefits of Temporary Buydown
In addition to moving expenses, generally during those first few years new homeowners typically incur added unexpected costs such as home repairs, purchasing new furniture, adding landscaping and performing home upgrades as well.  With all of these realities in mind, our temporary buydown program is designed to provide you the relief from having to make the regular full monthly mortgage payment, by requiring much less during those periods of time and bringing those savings back you.  Additionally, this is also a great way to slowly ease into the regular monthly mortgage payments especially if income is expected to rise in the next few years.

How does a Temporary Buydown work? 
In a temporary buydown, the concession amount from the seller/builder/ or lender is placed into a custodial buydown account. From there, each month a portion of that account is released and added to the borrower's reduced payment, thus satisfying the full payment requirement.

Available Temporary Buydowns

• 3-2-1
• 2-1
• 1-1
• 1-0
  

Example:

On $450,000 purchase price with a $400,000 loan amount, and a seller concession of $9,104 to pay for your 2-1 temporary buydown on a 30yr conventional mortgage term.

IF your Regular mortgage payment obligation is

$2,528 monthly

Then your Temporary 2-1 Buydown payment obligation would look like this:

Year 1 - $2,027 monthly (saving $501 per month)

Year 2 - $2,271 monthly (savings $257 per month)

Year 3-30 - $2,528 monthly (regular)

Contact us today for more details!