Temporary Buydowns

Temporary Buydown Programs

Interest rate buydowns are used for a wide variety of reasons – including starting a new job or preparing for an anticipated promotion. Temporary buydowns are designed to secure a lower payment for a 12-month or two-year period of time, as the interest is in effect “pre-paid.”

1 Year Buydown Program

Program Highlights

  • Lower your first year’s monthly payments

  • Lock in a lower rate for a full year

  • Lower outgoing monthly expenses and ease into monthly payments

  • Can be used on primary or secondary residences

  • Buydowns are available for fixed-rate mortgages and certain ARMs; FHA & VA options also available (must be owner occupied)

  • In some cases, this benefit may be paid for by the seller

Example of a 30-Year Fixed-Rate loan with a 1 year Buydown

1-year-buy-down-1024x430.png

* Monthly payments do not include taxes and insurance premiums. Your actual payment obligation will be greater.

Example based on a 30 year fixed with 20% down, one year buydown, $350K loan amount, APR reflective of cost of buydown being paid by seller. The above sample rates and APRs are based on interest rates and terms available as of 8/26/18, factoring in prepaid finance charges (per diem interest and closing fees). Interest rates could vary or change without notice, charges apply for the program, buyer is subject to qualifications for specific loan terms, occupancy, downpayment, credit and underwriting requirements, and/or investor program guidelines.

2-1-0 Buydown Program

Program Highlights

  • Lower your monthly payments for two years

  • Lock in a lower rate for two years

  • Lower outgoing monthly expenses and ease into monthly payments

  • Can be used on primary or secondary residences

  • Buydowns are available for fixed-rate mortgages and certain ARMs; FHA & VA options also available (must be owner occupied)

  • In some cases, this benefit may be paid for by the seller

Example of a 30-Year Fixed-Rate loan with a 2-1-0 Buydown

2-1-0-temp-buy-down-comes-second-1024x429.png

* Monthly payments do not include taxes and insurance premiums. Your actual payment obligation will be greater.

Example based on a 30 year fixed with 20% down, two year buydown, $350K loan amount, APR reflective of cost of buydown being paid by seller. The above sample rates and APRs are based on interest rates and terms available as of 8/26/18, factoring in prepaid finance charges (per diem interest and closing fees). Interest rates could vary or change without notice, charges apply for the program, buyer is subject to qualifications for specific loan terms, occupancy, downpayment, credit and underwriting requirements, and/or investor program guidelines.