Year 2: Interest Rate at 4.75%, Monthly Payment: $1,922.02 Year 3: Interest Rate at 5.75%, Monthly Payment: $2,138.75 Years 4-30: Returns to original rate of 6.75%
2-1 Temporary Rate Buydown:
This is a buydown option that reduces the interest rate for the first two years of the mortgage:
Year 1: Interest rate is reduced by 2% Year 2: Interest rate is reduced by 1% Year 3 and beyond: Returns to the original locked rate
Key Details for Both Buydowns: Available for Conventional fixed and ARMs Primary and second home purchases Jumbo 30-Year Fixed, FHA and VA primary home purchases Fannie Mae (DU) and manufactured homes. We pride ourselves with working with Veterans to provide VA Loans. "WE THANK YOU FOR YOUR SERVICE VETERANS". Important Considerations: Borrower must qualify for the full monthly payment (before the buydown rate is applied) * Seller concessions can be used to fund the buydown * Not eligible for recast until the buydown period is over * The buydown does not actually lower the rate, but provides a cash offset to monthly payments
Benefits: * Lower monthly payments in the first 1-3 years * Helps sellers get a property sold
* Allows borrowers to use excess seller concessions * Provides an easier transition from renting to buying * Potential opportunity to refinance to a lower rate in the future
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