MENU
October 26, 2022

THE 2-1 INTEREST RATE BUYDOWN

Reduced Monthly Payments for the first 2 years with a Temporary Rate Buydown!

Lower your current interest rate by 2% with the 2-1 Seller Buydown. You can have a reduction in your monthly payment for the first 2 years of your mortgage with a temporary reduced rate buydown. These are paid from seller or builder concessions.

How Does the 2-1 Interest Rate Buydown Work?

BuydownRate

The buydown funds (from seller or builder) are held in an escrow account by your mortgage lender. The additional funds are disbursed each month to supplement your reduced payment for the first 2 years. The rate will be reduced by 2% the first year, and 1% the second. If in the future rates dropped, you can refinance with no penalty. Any unused escrow funds will be applied to the payoff.

*Rates and Payments listed above are for EXAMPLE ONLY. Annual percentage rate (APR) is based on 1% origination fee, $950 in other fees and 15 days of interest. Program rates, terms, and conditions are subject to change at any time and may vary based on borrower’s credit history. Example loan scenario: If borrower with a 740 FICO score and 33% debt-toincome (DTI) ratio. purchases a 30-year fixed rate mortgage (loan amount $250,000) with an interest rate of 7.0% (APR 7.44%) and a 20% down payment. Does not include applicable taxes and insurance. The actual obligation will be greater. All loans are subject to credit and property approval. Certain restrictions may apply.

Call one of our experienced mortgage professionals for more info!

Posted In
, ,
Related Articles
Here We Go
How to Improve Your Credit Score in 2018
Lots going on so, let’s get started.
Comments