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.
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First Class Mortgage
Maple Grove, Minnesota // NMLS #322842
First-class service. First-class knowledge. A first-class experience. At First Class Mortgage, our team understands that each customer is unique, and we offer personalized attention to meet your specific financial needs. With our simplified mortgage process, buying or refinancing your home has never been easier. That’s why we pride ourselves on first-class service, knowledge, and experience. Trust First Class Mortgage for a top-rated, personalized mortgage experience.
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We are licensed in MN, SD, WI, and FL.