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Contempory HomeDo you find yourself wanting to get a better mortgage interest rate on a 30-year fixed rate loan? Maybe you wish the first year (and second and third year) could offer a lower rate as you ease into the long-term prospect of a 30-year mortgage? For these reasons, New American Funding has loans that offer a reduced payment rate in the first year, the first two years and even the first three years of your mortgage.

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What Is a Buydown?

A mortgage rate buydown** is when a borrower pays an additional charge (called a "point") in exchange for a temporary lower interest rate and lower payment on their mortgage. This one-time fee is paid at closing by the borrower.

As a potential borrower, you may be eligible for a new fixed loan from New American Funding that could reduce your first-year, second-year and third-year payment rate on a 30-year loan. There are three buydown options to choose from:

  • 1-0 Buydown: A payment rate 1% lower than the note rate for the first year on a new loan
  • 2-1 Buydown: A payment rate 2% lower than the note rate for the first year and a payment rate that is 1% lower than the note rate in the second year on a new loan
  • 1-1-1 Buydown: A payment rate 1% lower than the note rate for the first three years on a new loan

Buydown Loan Benefits

  • Ease into your mortgage payments
  • More affordable mortgage payment before buydown payment rate expires
  • Pay down bills
  • Buy new appliances
  • Make upgrades
  • Add to your savings account 

Buydown Eligibility

New American Funding's unique lender-paid Buydown program could save you money when you need it the most. A New American Funding Loan Officer can help to determine if this loan product is right for you and if you meet the eligibility requirements.

Buydown Loan Options

Most people don't keep their loan for 30 years and New American Funding has figured out a way for you to realize your low payment rate savings in the first year rather than over the life of your loan. Give us a call to learn more about our Buydown product and how it might be beneficial for you and your finances.

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