🏡 A LITTLE BREATHING ROOM CAN GO A LONG WAY! 💰

 

 

Buying a home is exciting… but let's face it, those first couple of years can be expensive! Between moving, furniture, and all those little things you didn't realize you needed, your wallet might need a vacation! 😂

 That's where a 2-1 temporary rate buydown can come in handy!

 Now, before we get into the numbers, let's be clear about something. I'm using a HYPOTHETICAL interest rate of 6.50% strictly for educational purposes. Mortgage rates can change daily based on market conditions, and the rate you're offered depends on several factors, including your credit, loan program, down payment, and overall financial profile.

 

So no, I'm not quoting today's rates! 😂 I'm simply showing you how the numbers work.

Let's use a $300,000 loan with a hypothetical 6.50% fixed rate over 30 years.

 

🏡 Year 1: Payment based on 4.50% — approximately $1,520/month.

 

🏡 Year 2: Payment based on 5.50% — approximately $1,703/month.

 

🏡 Year 3 and beyond: Full payment based on 6.50% — approximately $1,896/month.

 

These amounts reflect principal and interest only. Property taxes, homeowners insurance, mortgage insurance (if applicable), and HOA fees are additional.

 

💡 Here's the important part!

 

Your actual mortgage note rate remains 6.50% throughout the loan. Funds are deposited into a temporary buydown account upfront to cover the difference between your reduced payments and the full scheduled payments during the first two years.

 

Depending on the loan program, a seller may even be able to contribute toward that cost!

 

And remember, a temporary buydown doesn't mean you qualify using the lower payment. You still need to qualify at the full note rate.

 

It's simply another financing option that may provide some breathing room during those first couple of years.

 

Because sometimes the smartest move isn't finding a different house… it's understanding the financing options available to you! 🏡❤️

 

Questions? I'm always happy to help you understand your options!

 

Michelle Bivens | Mortgage Loan Officer
Caliver Beach Mortgage
📞 443-831-0554
NMLS #812331 | Company NMLS #1434247

🔗 https://michellebivens1.zipforhome.com/

 

Hypothetical example for educational purposes only. Not an advertisement of current interest rates or a loan offer. Actual rates, payments, eligibility, and program availability vary. Not a commitment to lend.

 

#MortgageEducation #RateBuydown #HomeBuyingTips #CaliverBeachMortgage