BUYDOWNS CAN BE AN ATTRACTIVE BENEFIT FOR BOTH SELLERS AND BUYERS.
2-1 Buydown Loans, or Temporary Buydown Loans offer lower interest rates for the first couple of years, smaller monthly payments, and more available cash to finance home projects or other expenses.
WHAT IS A 2-1 BUYDOWN MORTGAGE LOAN?
A 2-1 Buydown is a mortgage financing option that allows borrowers to reduce their interest rate and monthly payments for the first few years of the 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.
WHAT ARE THE ADVANTAGES OF A 2-1 BUYDOWN LOANS?
- Can make 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 monthly payments for the first few years of the mortgage, you'll have more cash flow available to use for other expenses and investments.
- Temporary Buydown Loans can be a beneficial option for buyers who are purchasing during a time when the market has high interest rates.
- This can be a good financing option for homebuyers who are planning to refinance in a few years.
This is not a commitment to lend; you must submit additional information for review and approval. Rate, Annual Percentage Rate (APR), and terms are subject to change without notice. See your Loan Officer for complete program guidelines costs, fees, and annual percentage rates (APRs).
In the first year, you’ll save 2% on the interest rate. In the second year, you’ll save 1%. In the third year, the loan will move to a standard fixed rate. Buydowns can be an attractive benefit for both buyers and sellers. To learn more, contact a First Liberty Bank mortgage lender in Oklahoma City or Norman.
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