2-1 Temporary Buydown
What is a buydown?
A buydown is a way to reduce interest rates. The bought down interest rate can be permanent or temporary; it can be paid for by either the seller or borrower. On a temporary buydown the seller concessions are deposited as a lumpsum into a buydown account. A portion of this sum is released each month to reduce the borrower's monthly payments.
Help your borrowers start off strong with a lower monthly payment through the Windsor 2-1 Temporary Buydown, offering a lower bought-down rate at the beginning of their loan. This is a great option for borrowers who have excess seller concessions to use or expect an increase to their income over the next few years.
Take advantage of a low fixed rate today!
Available for:
- Conventional primary and secondary home purchases
- FHA
- VA
Seller-paid buydown options:
- 2-1 buydown- the effective rate is 2% lower in the first year and 1% lower in the second year. In the third year, the full note rate will apply
Other key details:
- The borrower must qualify for the full monthly payment (before the buydown rate is applied)
- Seller concessions are deposited as a lump sum into a buydown account. A portion of this sum is released each month to reduce the borrower’s monthly payment.
2-1 Temporary Buydown is not available for Windsor National DPA or government programs, investment properties, cash-out refinance, or R/T refinance currently. Information is subject to change. Certain restrictions apply. Subject to borrower approval. All data is subject to borrower approval *Signature Lending, LLC and 1666 E Sunshine St, Springfield MO 65804 1938889, Broker licenses number, signature lending, LLC. * NMLS: 1938889
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