How to buy down the first year (or two! or three!) of your mortgage with RateReduce Temp

The total buydown contribution that the seller or the builder would offer is $9,269.52 in this example.

Temporary Buydown pros and cons

You’re probably asking yourself, why would a seller offer to pay to help you get charged less on your mortgage? Well, it depends on the conditions in the local housing market. If a seller needs to sell, but there aren’t enough buyers able to afford the monthly payments on the house due to current mortgage rates, a Temporary Buydown could help close the deal.

In addition, it’s a great alternative to cutting the asking price of the home. This way, a seller can help make the buyer’s monthly budget work while still getting a full price offer. Funding a buydown contribution could potentially be less costly than what they would have taken off the price of the home.

This is especially true with builders as well. If a construction company is having difficulty selling, and is sitting on many new homes, they could provide an incentive. This allows them to keep the cash flowing so they can move on to other projects. The benefits to a buyer are pretty apparent:

Ease into homeownership and the monthly payment knowing they’ll likely be able to afford a bit more each year.

More money to handle the initial expenses that come with moving into a new home.

It’s important to remember that a Temporary Buydown is just that—temporary. After a year, the monthly expenses go up, and again the year after that for homeowners with a 2-1 or 1.5-0.5 buydown.

How can I get into the RateReduce Temp program?

Homebuyers looking to find an affordable rate should look into every option you can find to lower your monthly payment. RateReduce Temp may be the perfect solution for a buyer and a seller, so it’s worth asking for it as part of your negotiation.

You can start your application today to get on the path to home ownership with a reduced mortgage rate or contact a loan officer to get additional information.

*Both temporary and permanent RateReduce options are available from participating builders and sellers on select properties. Buyer paid RateReduce options are also available for qualified borrowers on any approvable property per loan product restrictions.

** Monthly payment includes principal and interest, not taxes, insurance or other expenses. Sample loan scenarios do not include advertised rates, are provided for illustration purposes only and are not intended to provide mortgage or other financial advice specific to the circumstances of any individual and should not be relied upon in that regard. OriginPoint cannot predict where rates will be in the future.

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply. All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. OriginPoint does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by OriginPoint. OriginPoint its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.