BORROWERS CAN LOWER THEIR INTEREST RATE BY UP TO 3% AT THE START OF THEIR LOAN

Get extra flexibility with a lower monthly payment by using a Temporary Rate Buydown to lower your interest rate at the start of your loan. It’s a great option for almost any borrower, especially those who:

• Expect an increase in their income in the next few years
• Have excess seller concessions to use and want to take advantage of a lower fixed rate
• Are looking to do renovations, make upgrades, or buy furniture for their new home
• Are going from renting to buying and want to ease into their mortgage with a lower payment

Temporary Rate Buydowns are available for:

• Conventional primary and second home purchases
• FHA and VA primary home purchases
• Select Jumbo Products

Choose between these seller or lender-paid 1, 2, and 3-year Temporary Rate Buydown options:

• 3-2-1 buydown: A buydown of 3% in the first year, 2% in the second year, 1% in the third year, then back to the original locked rate in the fourth year for the duration of the term.
• 2-1 buydown: A buydown of 2% in the first year and 1% in the second year, then back to the original locked rate in the third year for the duration of the term.
• 1-1 buydown: A buydown of 1% in the first two years, then back to the original locked rate in the third year for the duration of the term. 
• 1-0 buydown: A buydown of 1% in the first year, then back to the original locked rate in the second year for the duration of the term.

Here’s an example of the potential savings on a 3-2-1 seller-paid buydown:

^{*The principal, interest and MI payment on a $350,000 30-year Fixed-Rate Loan at 6.750% and 90% loan-to-value (LTV) is $2,366.34. The Annual Percentage Rate (APR) is 7.138% with estimated finance charges of $5,600.The principal and interest payments, which will continue for 360 months until paid in full, do not include taxes and home insurance premium, which will result in a higher actual monthly payment. Rates current as of 6/8/23. Subject to borrower approval. Some exclusions may apply.}

Here’s an example of the potential savings on a 2-1 seller-paid buydown:

^{*The principal, interest and MI payment on a $1,200,000 30-year Fixed-Rate Loan at 6.750% and 80% loan-to-value (LTV) is $7,783.18. The Annual Percentage Rate (APR) is 6.848% with estimated finance charges of $12,000.The principal and interest payments, which will continue for 360 months until paid in full, do not include taxes and home insurance premium, which will result in a higher actual monthly payment. Rates current as of 6/8/23. Subject to borrower approval. Some exclusions may apply.}

• The borrower must qualify for the full monthly payment (before the buydown rate is applied)
• For the seller-paid option, seller concessions are deposited as a lump sum into a buydown account. A portion of this sum is released each month to reduce the borrower’s monthly payments. If you refinance or sell before the buy down period is over, any unused money is applied towards a reduction of the principal balance of your loan.