Lower price
A smaller loan and a lower payment for the life of the loan.
The beauty ofmortgage strategy.
Same home. Same seller credit. Compare a lower price, a temporary buydown, a permanent buydown and help with closing costs, side by side.
Figures are illustrations, not a loan offer or a commitment to lend. Sample rates are not current quotes.
Four waysto use a credit.
Temporary and permanent rate buydowns are available. The seller or builder can pay for one as a credit, or you can buy one yourself, within your loan program’s limits.
FAQs
Buydowns and seller credits, in plain language.
Your rate starts 2% below the note rate in year one and 1% below in year two. From year three you pay the full note rate. The cost is paid up front, by the seller, the builder or you, and it covers the difference in those first two years.
Your rate starts 1% below the note rate for the first year. From year two you pay the full note rate.
You pay discount points at closing to lower your fixed rate for the life of the loan. Whether it pays off depends on how long you keep the loan.
It depends on how long you’ll keep the loan, how much cash you want after closing and where you think rates are going. A price cut lowers the payment a little for the whole loan. A temporary buydown lowers it more for a year or two. Run your numbers, then talk it through with Kyle.
No. With a temporary buydown you qualify at the full note rate, so the lower early payments are a cushion, not a stretch.
No. The calculator is an illustration based on the numbers you enter. Sample rates are for illustration, not current quotes. Rates change daily, and programs and limits vary.
Talkstrategy.
Send Kyle the listing and the credit on the table. We’ll show you which option helps most, and bring your CPA or advisor in if you want.