3-2-1 Buydown

Get an Interest Rate Up to 3% Lower At the Start of Your Loan!

Use seller concessions to get a Temporary Rate Buydown

Did you know that seller concessions can mean a much smaller mortgage payment? Use them toward a Temporary Rate Buydown to lower your interest rate at the beginning of your loan…giving you breathing room for repairs, savings and more.

In this market, options are important and we want to help provide your buyers with reduced rate solutions.

With a temporary buydown, you'll be able to have a lower monthly payment to start out with. Use the 1, 2 or 3 year buydown options to take advantage of a lower rate and gain extra flexibility with a lower monthly payment.

It’s no doubt this is beneficial to the homebuyer, but what are the benefits for the seller?

• No reduction in sales price
• Helps with buyers who are on the fence about rates
• Keeps future comps and home values high for the neighborhood
• Buyers get their dream home now versus waiting for rates to fall

1, 2 and 3-year buydown options

• 3-2-1: The interest rate is 3% lower than the note rate in year one, 2% lower than the note rate in year two, and 1% lower than the note rate in year three.
• 2-1 buydown of 2% in the first year and 1% in the second year. By the third year they are at the full rate.
• 1-0 buydown of 1% in the first year. By the second year they are at the full rate.
• See an example of the potential savings on a 3-2-1 temporary buydown:

DHL offers these buy down options that can be paid by any interested party other than the buyer.

For more information, chat with us or give us a call!

*The Annual Percentage Rate (APR) is 6.061% with estimated finance charges of $8,300. 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 8/16/2022. Subject to borrower approval. Some exclusions may apply.

Information is subject to change. Certain restrictions apply. Subject to borrower approval.

SELLER BENEFITS

No reduction in sales price

Helps with buyers who are on the fence about rates

Keeps future comps and home values high for the neighborhood

Buyers get their dream home now versus waiting for rates to fall

NMLS: 184302

Source: https://www.uwm.com/price-a-loan/exclusives/products/temporary-rate-buydowns