Do 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.
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
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
- 30-year fixed-rate purchase loans only
- Available on Conventional, FHA and VA loans
- Must be your primary residence
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.