Take advantage of these great programs to lower your payments.
Today we’ll talk about how to buy a home in today’s market at 4%. How is that possible? There are two different programs out there that can help you. One is called a 3-2-1 Buydown, and the other is called a 2-1 Buydown. These are programs where the seller can buy down the rate for the first two to three years of the buyer’s mortgage, giving them a lower mortgage payment at the beginning. Every year, the interest rate goes up 1% until it locks into today’s interest rate, which is around 7%. With a 3-2-1 Buydown, you start at 4%, and it levels off at 7% after three years.
A lender will qualify you on today’s interest rate of around 7%, but you get that savings over the first two to three years, depending on which loan program you go with. Many sellers are willing to offer this program and pay for it because they want to get their homes sold.
Once that rate goes to the normal 7%, it’s locking in. At that rate, it’s not a variable rate. Make sure the lender you’re talking to is actually giving you the fixed rate and not a variable rate after that.
Reach out to me at (602) 738-9943 or at firstname.lastname@example.org, and we can talk more about these programs. I’ll also put you in touch with one of my preferred lenders. I look forward to hearing from you.