First Class Mortgage can give clients extra flexibility with a lower monthly payment by offering a Temporary Rate Buydown to lower their interest rate at the start of their loan. It’s a great option for almost any borrower, especially those who:
– Expect an increase in their income in the next few years
– Have excess seller concessions to use and want to take advantage of a low fixed rate
– Are looking to do renovations, make upgrades, or buy furniture for their new home
– Are going from renting to buying and want to ease into their mortgage with a lower payment
Temporary Rate Buydowns are available for:
– Conventional primary and second home purchases
– FHA and VA primary home purchases
– Prime Jumbo 30-year fixed primary and second home purchases
Choose between these seller – or lender-paid 1-, 2- and 3-year Temporary Rate Buydown options:
3-2-1 buydown: A buydown of 3% in the first year, 2% in the second year, 1% in the third year, then back to the original locked rate in the fourth year for the duration of the term.
2-1 buydown: A buydown of 2% in the first year and 1% in the second year, then back to the original locked rate in the third year for the duration of the term.
1-1 buydown: A buydown of 1% in the first two years, then back to the original locked rate in the third year for the duration of the term.
1-0 buydown: A buydown of 1% in the first year, then back to the original locked rate in the second year for the duration of the term.
Here’s an example of the potential savings on a 3-2-1 seller-paid buydown:
