Published September 1, 2023
Concerned about Rates? Consider a Temporary Buydown.
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Concerned about Rates? Consider a Temporary Buydown.
Higher rates mean higher payments but less competition. One way to lower your payments is a temporary buydown paid for by the seller.
“In a temporary buydown, the effective interest rate that a borrower pays during the early years of the mortgage is reduced as a result of the deposit of a lump sum of money (sometimes called a “subsidy”) into a buydown account, a portion of which is released each month to reduce the borrower's payments.
A common temporary buydown is a “3-2-1,” meaning the mortgage payment in years one, two, and three is calculated at rates of 3 percent, 2 percent, and 1 percent, respectively, below the rate on the loan.” FNMA
We are happy to explore how we are using buydowns to help save homeowners thousands of dollars and start building equity.
Happy House Hunting!
Stefanie Hanson
Broker/Owner | Beckman's Real Estate | PLACE
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