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Loan Program

2-1 Buydown

View InfoRate Buydown Calculator

Check out how much you can save using our Rate Buydown Mortgage Calculator…

Our mortgage calculators are for demonstration purposes only and may not reflect actual numbers for your specific mortgage. Contact us and we will walk you through the best possible mortgage scenario for your specific needs!

Buydown Type
$
$100,000 $2 Million
$
%
0% 80%
%
0% 20%
Loan Term
Advanced (optional)
$
%
0% 5%
$
%
0% 15%
$ /month
The total buydown fee for this loan is $ The buydown fee is the cost of lowering your interest rate for the first few years of your loan. This is usually paid by the seller and passed on to the buyer as savings in the form of a lower interest rate.

Yearly Mortgage payments breakdown:

Buyer Savings:

Year 1

3.25%
Original Payment $2,462.87
New Payment $1,740.83
Monthly Savings $722.04
Annual Savings $8,664.48
Estimated Taxes & Insurance Property taxes are generally estimated to be 1.2% of the home's value, but may vary based on your location. Annual homeowners insurance is roughly 0.35% of the home's value but can change based on insurer. Your loan specialist can help you determine property tax and insurance rates in your area.
Estimated Buyer Savings $

Loan amount
$
Down payment
$
Base Interest rate
Loan term
Taxes & insurance included?
Property tax
Homeowner's insurance
$
HOA dues
$
Payment Breakdown By Year

Amortization Schedule Breakdown

Our detailed amortization schedule breaks down your mortgage payments, showing how they are split between interest and principal over the life of your loan. Note: The actual monthly payment may be higher than what is shown here, as this schedule does not account for variable costs such as property taxes and home insurance, which are often included in your total mortgage payment.
  • Principal payments: $ (the amount borrowed)
  • Interest payments: $ (the cost of borrowing)

2-1 Interest Rate Buydown

We are now offering a Temporary Rate Buydown to lower a borrower’s interest rate at the start of their loan. It’s a great option for borrowers who expect an increase in their income in the next few years and/or who have excess seller concessions to use — and want to take advantage of a low fixed rate.  While this is a temporary rate reduction, this program has a lot of buyers and sellers very excited.

Seller-paid 1- year OR 2-year buydown options

  • 2-1 buydown of 2% in the first year and 1% in the second year. By the third year they are at the full rate.
  • 1-0 buydown of 1% in the first year. By the second year they are at the full rate.
  • See an example of the potential savings on a 2-1 temporary buydown:

Conventional 30-Year Fixed

  • 2-1 Temporary Buydown on a $360,000 loan amt for a borrower with a 740 FICO and 90% LTV
  • The borrower must qualify for the full monthly payment (before the buydown rate is applied)
  • Seller concessions are deposited as a lump sum into a buydown account. A portion of this sum is released each month to reduce the borrower’s monthly payments.

*The Annual Percentage Rate (APR) is 7.152%. The principal and interest payments, which will continue for 360 months until paid in full, do not include taxes and home insurance premium, which will result in a higher actual monthly payment. Rates as of 10/28/2022. Subject to borrower approval. Some exclusions may apply.

Information is subject to change.  Certain restrictions apply.  Subject to borrower approval.

Get started by using one of our FREE tools!

First Class Mortgage

Maple Grove, Minnesota  //  NMLS #322842

First-Class Service, Every Step of the Way

At First Class Mortgage Maple Grove, we simplify home financing with personalized solutions tailored to your needs. Locally owned and licensed in MN, SD, WI, and FL, we offer access to multiple lenders, ensuring the best rates and loan options.

From pre-approval to closing, we’re committed to exceptional service, expert guidance, and a seamless mortgage experience. Whether buying or refinancing, trust us to help you save time, money, and stress!

Locally owned. Connected nationwide.

We are licensed in MN, SD, WI, and FL.

mgsales@firstclasscorp.com(763) 416-6789Meet Our Team

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