For home buyers who are concerned with current mortgage rates, prefer not to refinance when rates fall, or are just seeking lower payments in the first years in a home, Temporary Buydowns can offer a creative financing solution.
Temporary Buydowns, as opposed to permanent buydowns with discount points, reduce the interest rate and payment on a mortgage loan for a limited period of time. Temporary buydowns are attractive to buyers, as they reduce a buyer's mortgage payment during the buydown period. They can also be attractive to sellers by making a home more attractive to potential buyers while avoiding reducing the listing price.
Temporary buydowns are sales incentives paid for by the home seller, whether an individual or a builder. There are three buydown options, as follows:
3-2-1 Buydown – the buyer pays 3 percentage points less in interest in year 1, 2 percentage points less in year 2, 1 percentage point less in year 3, and the full rate after year 3.
2-1 Buydown - the buyer pays 2 percentage points less in interest in year 1, 1 percentage point less in year 2, and the full rate after year 2.
1-0 Buydown – the buyer pays 1 percentage point less in interest in year 1 and the full rate after year 1.
Choose the best Temporary Buydown Loan option for you to help make your monthly payments more affordable for a period of time. To get prequalified or start the application process, contact an FLB Mortgage Lender, email us for more information, or visit one of our branch locations in Oklahoma City, Oklahoma, Norman, Oklahoma, or Frisco, Texas today!
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. Certain restrictions apply to all programs. See your FLB Mortgage Loan Officer for complete program guidelines, loan application, applicable fees and annual percentage rates (APRs) for all loan programs. Full underwritten approval is required, and all loan approvals are subject to credit, income and asset review and approval. Bank NMLS#1215182
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