Buydowns can be an attractive benefit for both sellers and buyers.
A 2-1 buydown is a mortgage financing option that allows you to reduce your interest rate and monthly payments for the first few years of your loan. This can be a helpful tool for anyone looking to purchase a home or invest in real estate.
Buyers can use a 2-1 Buydown to reduce their interest rate for the first few years of their mortgage. For example, the buyer can lower the interest rate by 2% for the first year, by 1% for the second year, and then the interest rate will be at the contracted interest rate for the remaining term of the loan.
So, how can a 2-1 buydown benefit you? For starters, it can make your monthly mortgage payments more affordable. This can be particularly helpful for those who are just starting out or those who are looking to invest in real estate without breaking the bank. By reducing your monthly payments for the first few years of your mortgage, you'll have more cash flow available to use for other expenses and investments.
Certain restrictions apply on all programs. See your First Liberty Bank Loan Officer for complete program guidelines, loan application, applicable fees and annual percentage rates (APR’s) for all loan programs. Full underwritten approval is required and all loan approvals are subject to credit, income and asset review and approval.
