We offer seller-paid and lender-paid Temporary Rate Buydowns to help borrowers lower their interest rate for the first 12 to 36 months of their mortgage.
HOW DOES IT WORK?
What? Seller concessions can be used to pay the upfront fee with a seller-paid temporary rate buydown. A lender-paid LLPA option can be used to cover the buydown cost on a lender-paid temporary rate buydown.
Who? Borrowers who have seller concessions or would like to have a lower interest rate in the beginning of their mortgage for a lower monthly payment. The borrower must qualify with the initial note rate.
REALTORS: This is a great opportunity to help sellers get a property sold without affecting the sales price. Great option for when interest rates are high. The benefit goes directly to the borrower
BUYERS : This is a great way for borrowers to use any excess seller concessions that often go unutilized. A lower interest rate for the first 1-3 years allowing the borrower to have a lower monthly payment
Also the borrower can use the monthly savings to do renovations, upgrades, or buy furniture for the new home
In a high interest rate environment, borrowers will more than likely be able to refinance to a lower rate than the one they will adjust to after the 1-3 years
Easier transition from renting to buying by easing the borrower into their mortgage with a lower payment