Learn About a 2-1 Buydown Loan
At The Good Buy Mortgage Company, we understand that navigating the home buying process can be difficult and somewhat intimidating. It's our goal to provide you with the information you need to make the right decision when it comes to your home financing needs! We have provided the information below to answer some of the most common questions about 2-1 Buydown Loans.
How a Temporary Buydown Works
A temporary buydown uses a funded subsidy to reduce the borrower's required payments during an initial period. The mortgage note rate and the payment after the subsidy ends still matter. Ask for the complete payment schedule and funding terms.
Qualify for the Ongoing Payment
A temporary buydown is not a way to qualify using only the reduced introductory payment. Underwriting must follow the applicable program's qualifying-payment rules. For example, Fannie Mae requires qualification without considering the bought-down rate.
Compare the Tradeoffs
Review who funds the subsidy, how payments change, eligible loan programs, and the cost compared with other available concessions. Do not rely on a future refinance or income increase to afford the ongoing payment.
Review Your Options
Ask a TGBMC home loan advisor, call (469) 351-1081, or start your secure application.
An inquiry is not a loan approval or rate lock. Use the secure application process for financial documents.
Official resource: Learn more about this program.
Contact The Good Buy Mortgage Company to assess whether a 2-1 Buydown Loan is the right fit for your financial situation.
