November 22nd, 2022 10:19 AM by Sam Kader
The program gives borrowers the opportunity to temporarily lower Interest Rate/Note Rate at the start of the loan.
Choose between 1, 2 and 3-Year Temporary Rate Buydown options that can be paid by either seller or lender or a combination of each one (hybrid).
Example: Purchase price is $700,000 , Loan amount is $600,000, Note Rate/Interest Rate is 6.5%
**For Rates and APRs please click here.
Year 1 - Rate will be 2% lower than Note Rate at 4.5%.
Year 2 - Rate will be 1% lower than Note Rate at 5.5%.
Year 3 - Full Note Rate at 6.5%.
Total seller concessions needed is $14,338.44. As a general rule, total seller concessions may not exceed 3% of purchase price. For seller-paid option - total seller concessions are deposited as a lump sum into a buydown account. A portion of this sum is released each month to reduce borrower's monthly payments.
Temporary Rate Buydown is a great option for almost any borrower especially if you are:
Agents - please contact us ahead of time to calculate approximately how much seller concession is needed. When requesting for seller concession - please provide a signed addendum on Form 34 with what the exact verbiage should be "Total seller concession of $X,XXX shall be applied for temporary rate buydown and for other closing costs".
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