A Temporary Buydown has made a strong revival in the mortgage industry as a popular solution that combats high interest rates by making payments more affordable for a period of time ranging from one to three years.
Hello! My name is Scott Buehler, a lead mortgage advisor with Guild Mortgage local to the Southern Utah area.
Want to talk? Head on over to my Southern Utah Mortgage Lender page to setup an appointment!
On this page, I would like to share a short promotional video and go over some of the many awesome benefits of using a temporary buydown.
If you are a current homeowner that feels trapped with a lower-rate mortgage, consider a temporary buydown which would allow you to sell your current house then by a new primary residence. Do this as part of your move-up or move-down strategy, or relocate to a better city, neighborhood or school area that aligns with your current goals.
If you are renting and want to buy, consider a temporary buydown to help make payments more affordable for up to three years.
Advantages of a 2/1 Temporary Buydown Include:
This is unlike a permanent interest rate buydown where you permanently buy down the rate with a one-time cost known as points. When doing a permanent buydown, the reduction in your payment is likely to be less significant but would last the entirety of your loan term.
Types of Temporary Buydowns
Loan Program Options
Would you like to consider a temporary buydown as part of your home purchase strategy?
I would like to create a custom video presentation that is recorded specific to your goals including your target payment amount, purchase price, location (for property tax calculations) and more!
Rates shown in the video above are accurate as of September 1st, 2023, and used for illustration purposes only. Your actual rate, payment and costs could be higher. Get an official Loan Estimate before choosing a loan. This temporary buydown scenario assumes a purchase price of $400,000, a loan amount of $380,000, a down payment of $20,000 (5%) and a seller credit of $10,000. Buyer will make their 1st year payments of $2,369.93/mo. with an interest rate of 4.99% with APR 5.374%. Buyer will make their 2nd year payments of $2,608.18/mo. with an interest rate of 5.99% with APR 6.407%. Buyer’s year 3-30 will make payments of $2,857.93/mo., at interest rate of 6.99% with APR 7.439%.
All information, loan programs & interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Borrowers must qualify based on the note rate of the program selected. The buydown cash amount can only be paid by a participating seller or lender. Contact Scott Buehler at Guild Mortgage, (435) 590-1019, or firstname.lastname@example.org, for home financing options.