When buying a home, every dollar counts. What if you could reduce your mortgage payment in the early years without increasing your out-of-pocket costs? That’s exactly what a Temporary Rate Buydown can do—and seller concessions can help make it happen!
What is a Temporary Rate Buydown?
A Temporary Rate Buydown is a financing strategy where the seller (or sometimes the lender) provides funds to temporarily reduce your interest rate for the first few years of your loan.
The most common options are:
📉 3-2-1 Buydown – Your rate drops 3% in year 1, 2% in year 2, and 1% in year 3 before returning to the original fixed rate.
📉 2-1 Buydown – Your rate drops 2% in year 1 and 1% in year 2, then returns to the original rate.
📉 1-0 Buydown – Your rate drops 1% for the first year before adjusting to the permanent rate.
How Seller Concessions Can Help
Seller concessions are negotiated contributions from the home seller to help cover certain buyer costs—like closing costs, prepaid taxes, and yes… a Temporary Rate Buydown!
By using seller concessions for a buydown, you can:
✔ Lower your initial mortgage payments—giving you breathing room for savings or home improvements.
✔ Ease into homeownership—perfect if you expect your income to grow in the next few years.
✔ Increase your buying power—affording a home that might have been just out of reach.
Why Now is the Perfect Time to Consider a Buydown
With current market conditions, many sellers are willing to negotiate concessions to help buyers secure financing. A buydown could be the key to making homeownership more affordable for you!
Let’s Find the Right Strategy for You
Not sure if a Temporary Rate Buydown is right for your situation? Let’s talk! I’ll help you explore all your options and find the best mortgage strategy to fit your budget.
📞 Call me at 206-949-5563 or visit www.YourMortgageCopilot.com to learn more! 🚀🏡
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