TEMPORARY BUYDOWNS

Want a lower rate and payment? A temporary buydown can help!

Be your client’s hero by offering them a temporary buydown!
A mortgage financing technique used to reduce monthly
payments by securing a lower interest rate for up to 2 years.

Temporary Buydowns

2-1 Buydowns:

  • Payment calculated at 2% below the note rate for the first year
  • Payment calculated at 1% below the note rate for the second year
  • Payment calculated at the note rate for the years three through maturity

1-0 Buydown:

  • Payment calculated at 1% below the note rate for the first year
  • Payment calculated at the note rate for the years two through maturity

Eligibility:

  • Available for principal residences and second homes.
  • Eligible for seller, real estate agent or builder funded subsidies only; borrower funded ineligible.
  • Purchase transactions.
  • 30 year fixed rate only
  • Available on FNMA/FHLMC/FHA