Temporary Buydown
A Temporary Buydown helps lower your monthly Principal & Interest payments during the first year or two of your mortgage. By using a seller credit, your payments are reduced temporarily, freeing up cash for moving expenses, renovations, or other transitional costs.
Make Your First Years Easier with a Buydown
A 1- or 2-Year Temporary Buydown can make the start of homeownership more affordable.
Key Details:
-
-
Seller credits must cover the buydown and any agreed closing costs.
-
Both borrower and seller sign a Buydown Agreement at loan submission and again at closing.
-
Temporary Buydown Options
2/1 Buydown
Borrower payments for the first year are based on Note Rate minus 2%; payments for the second year are based on Note Rate minus 1%; all other payments are fully amortized at the Note Rate starting on the 3rd year.
1/0 Buydown
Borrower payments for the first year are based on the Note Rate minus 1%; all other payments are fully amortized at the Note Rate starting on the 2nd year.
Quickly estimate payments, compare loan options, and see how different rates or terms impact your mortgage. Make smarter decisions with just a few clicks.
CalculatorsLearn the ins and outs of home buying, refinancing, and financing options. Our guides and articles help you feel confident every step of the way.
Education CenterFrom prequalification to closing. Keep track of what’s needed so nothing is overlooked.
Checklists
