• 2/1 buydown where the lender pays the difference in interest for the 2 years and not the seller

  • Sep 5 2024
  • Length: 3 mins
  • Podcast

2/1 buydown where the lender pays the difference in interest for the 2 years and not the seller

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  • Summary

  • First-time Homebuyers are able to purchase a home with a 2/1 Buydown at the wholesale lender's expense. If you purchase a home and the interest rate is say 6.375%, the 2/1 buydown allows you to pay 4.375% for the first year, then 5.375% the second year, and then 6.375% for the remainder of the loan
    Normally the seller would pay the interest difference for year 1 and year 2, now the Wholesale lender will pay that expense so it is not a negotiating feature for you on the purchase of the home. It is paid for by your lender and does not have to go to the seller.
    Elevated rates these past 2 years help to get the lower rate for a couple of years and with the probability of refinancing in that period of time
    Always bringing you products that can benefit you on your home purchase adventure

    tune in and learn at https://www.ddamortgage.com/blog

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