2-1 Temporary Buydown
Details
Year 1: The buyer obtains an interest rate 2% below the prevailing market rate. Year 2: The buyer obtains an interest rate 1% below the prevailing market rate. Year 3: The loan returns to the current market rate for the remainder of the loan.
Year 1: The buyer obtains an interest rate 2% below the prevailing market rate. Year 2: The buyer obtains an interest rate 1% below the prevailing market rate. Year 3: The loan returns to the current market rate for the remainder of the loan.
Advantages
• Saves seller money compared to price reduction
• Gives buyers deeply discounted first 2 years of ownership
• Offers more opportunity to capitalize on refi or short ownership timeline
• Provides confidence to buyers through cheaper startup costs on new home
• Saves seller money compared to price reduction
• Gives buyers deeply discounted first 2 years of ownership
• Offers more opportunity to capitalize on refi or short ownership timeline
• Provides confidence to buyers through cheaper startup costs on new home
Our goal is to find the best financing solution to achieve your specific goals.
Contact us today to learn more about our BOE Rate Discount program!
Scenario: | Conventional | Purchase Price
| Loan Amount
| Interest Rate:
|
Number of Payments | Payment Amount | Interest Rate | End Balance | Monthly Payment Savings | Yearly Savings |
12 | $1925.40 | 4.5% | $373,869.90 | $458.70 | $5717.52 |
12 | $2151.78 | 5.5% | $362,476.65 | $232.32 | $2931.12 |
335 | $2384.10 | 6.5% | $2,375.03 |
|
|
1 | $2,387.89 | 6.5% | $0 |
|
Retiring? Downsizing? Or thinking about buying or selling your home?
