A Temporary Rate Buydown Loan is a type of mortgage loan where the borrower pays an upfront fee to reduce the interest rate on the loan for a certain period of time. This can be a great option for borrowers who want to lower their monthly mortgage payments in the early years of homeownership.
At Quintal Mortgage Co, we offer Temporary Rate Buydown Loans to help our clients achieve their homeownership goals. With our competitive interest rates and flexible terms, we make it easy for borrowers to customize their loan to fit their financial needs.
To learn more about our Temporary Rate Buydown Mortgage Loans and how they can benefit you. Contact us today our team. You can also click Apply Now below to start your application online.
Reduce your monthly payment with our temporary mortgage rate buydown program, which gives buyers a lower rate and lower monthly payments for 1-3 years at the start of their loan. The seller or builder provides the savings, so there’s no cost to the buyer.
The 3-2-1 Temporary Buydown reduces the buyer’s interest rate by 3% for the first year of their loan, 2% for the second year, and 1% for the third year.
EXAMPLE: Sale price: $250,000 | Down payment: $50,000 | Loan amount: $200,000 | 30-year fixed rate: 6.5% | Annual percentage rate: 6.637%
| Effective Rate | P&I | Monthly savings | Total savings | |
|---|---|---|---|---|
| Yr 1 | 3.5% | $898.09 | $366.05 | $4,392.60 |
| Yr 2 | 4.5% | $1,013.37 | $250.77 | $3,009.24 |
| Yr 3 | 5.5% | $1,135.58 | $128.56 | $1,542.72 |
| Yr 4+ | 6.5% | $1,264.14 | $0 | $0 |
| Total savings and seller credit | $8,944.56 | |||
The 2-1 Temporary Buydown reduces the buyer’s interest rate by 2% for the first year of their loan and 1% for the second year.
EXAMPLE: Sale price: $450,000 | Down payment: $90,000 | Loan amount: $360,000 | 30-year fixed rate: 6.5% | Annual percentage rate: 6.619%
| Effective Rate | P&I | Monthly savings | Total savings | |
|---|---|---|---|---|
| Yr 1 | 4.5% | $1,824.07 | $451.37 | $5,416.44 |
| Yr 2 | 5.5% | $2,044.04 | $231.40 | $2,776.80 |
| Yr 3+ | 6.5% | $2,275.44 | $0 | $0 |
| Total savings and seller credit | $8,193.24 | |||
The 1-1 Temporary Buydown reduces the buyer’s interest rate by 1% for the first two years of their loan.
EXAMPLE: Sale price: $650,000 | Down payment: $130,000 | Loan amount: $520,000 | 30-year fixed rate: 6.5% | Annual percentage rate: 6.612%
| Effective Rate | P&I | Monthly savings | Total savings | |
|---|---|---|---|---|
| Yr 1 & 2 | 5.5% | $2,952.50 | $334.25 | $4,011 |
| Yr 3+ | 6.5% | $3,286.75 | $0 | $0 |
| Total savings and seller credit | $8,022 | |||
The 1-0 Temporary Buydown reduces the buyer’s interest rate by 1% for the first year of their loan.
EXAMPLE: $450,000 | Down payment: $90,000 | Loan amount: $360,000 | 30-year fixed rate: 6.5% | Annual percentage rate: 6.619%
| Effective Rate | P&I | Monthly savings | Total savings | |
|---|---|---|---|---|
| Yr 1 | 5.5% | $2,044.04 | $231.40 | $2,776.80 |
| Yr 2+ | 6.5% | $2,275.44 | $0 | $0 |
| Total savings and seller credit | $2,776.80 | |||
The sample rates provided are for illustration purposes only and are not intended to provide mortgage or other financial advice specific to the circumstances of any individual and should not be relied upon in that regard. Quintal Mortgage Co cannot predict where rates will be in the future. The payment example does not include assessments. Actual payment obligations may be greater and may vary. Mortgage Insurance Premium (MIP) is required for all FHA loans and Private Mortgage Insurance (PMI) is required for all conventional loans where the LTV is greater than 80%. Rate(s), APR(s) and payment info is valid as of 12/14/2022 and assumes a first lien position, 740 FICO score, 25-day rate lock, based on a single-family home. All terms are subject to change without notice. Loans are subject to underwriting guidelines and the applicant’s credit profiles, not all applicants will receive approval. Contact Quintal Mortgage Co for more information. Available for conventional, FHA, VA, and USDA loans only. Equal Housing Opportunity. All loans subject to underwriting approval. Certain restrictions apply. Call for details.
Don't miss out on the opportunity to lower your monthly mortgage payments. Contact us today to learn more about our Temporary Rate Buydown Loans and start your journey to homeownership.