TEMPORARY RATE BUYDOWNS

This is a product addition that can benefit Sellers & Buyers. 

Sellers can keep their sales price intact while enticing more buyers to make offers.

Buyers can save money for the first 1- 3 years  in the home.

• Available for Owner Occupied & Second Home’s only
• Conventional, FHA & VA allowed
• Reduction cost is paid by seller or builder
• Must qualify with actual note rate/payment
• 3|2|1 Buydown= 3% Lower Year 1 >>2% Lower Year 2 >> 1% Lower Year 3 >> Full Payment Year 4
• 2|1 Buydown= 2% Lower Year 1 >> 1% Lower Year 2 >> Full Payment Year 3
• 1 Buydown= 1% Lower First Year >> Normal Payment Second Year

2|1 Temporary Buydown Example: $700,000 Purchase Price | 720 FICO | 20% Down | SFR

• Rate 5.99% (APR: 6.021%)
• P&I Payment- $3,357.21
• Year 1:
  • 2% Buy Down- 3.99%
  • P&I Payment $2,670.30
  • Monthly Savings: $686.91
  • Total Savings: $8,242.92
• Year 2:
  • 1% Buy Down- 4.99%
  • P&I Payment $3,005.86
  • Monthly Savings: $351.35
  • Total Savings: $4,216.20
• Year 3:
  • Normal Payment, unless refinanced
• Seller Total Cost: $12,459.12 (1.77%)