When interest rates were at historic lows, a typical fixed rate mortgage loan was all most people needed. Now, rates have risen. They’re still below long-term averages, yet appreciably higher than before. And of course, higher interest rates lead to higher monthly payments.
The good news is I have a loan program that can help. With a 2/1 Buydown, you’ll get a 30-year fixed rate loan with an interest rate that’s discounted 2% during the first year and 1% the second year.
This will help you ease into your mortgage with lower monthly payments temporarily. The payments step up at the end of the first and second year then remain fixed for the remainder of the loan.
A 2/1 Buydown comes with extra upfront costs that are often paid by the seller or builder. There are additional details that vary according to the specific scenario.
This is just one way today’s buyers can make buying the home they really want a reality. If you have questions or would like to learn more, reach out, and I’ll be happy to help.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.