Your Dream Home & a More Affordable Payment… Yes, You Can Have Both!
For those who are looking to purchase a home in the near future, it’s inevitable that you’ve begun to worry about interest rates rising and how that may affect your home financing journey. When rates are low, it’s much easier to justify purchasing a home. But today, with interest rates increasing, it can feel a bit more scary. Fortunately, Cambria Mortgage is now offering 3-2-1, 2-1 and 1-0 temporary buydowns on Conventional, FHA, VA and USDA fixed rate purchase loans.
What is a “temporary buydown”?
Essentially, a temporary interest rate buydown is an agreement between the seller and the buyer to fund an account that lowers the interest rate the buyer pays for a limited time. The seller buys the rate to sell their home at full purchase price, while the buyer receives a lower rate and reaps the benefits of a lower monthly payment for a limited time. That is a win-win situation!
What does this look like?
Below, you will see we’ve illustrated what this program may look like for a buyer with a loan amount of $350,000 and a 30-year fixed term. As you can see for a 3-2-1 buydown, for the first year after closing the interest rate is 3% less than what we’d typically lock in today. The following year, it’s 2% less. In that third year, it is 1% less. After these three years are up, the borrower would pay that full interest rate for the remainder of the mortgage unless he or she chooses to refinance their loan. We could very well see a drop in interest rates by then so that scenario is possible! A 2-1 buydown and a 1-0 buydown operate in the same capacity where the borrower pays less upfront and eventually works their way to that full interest rate.
Get the home of your dreams today with a payment that is much more affordable. Talk to your Cambria Mortgage Loan Officer and begin the process of getting pre-approved and exploring your home financing options. Call us today at 952-942-0110 or visit www.CambriaMortgage.com/Connect to get started!
Equal Housing Lender, Cambria Mortgage NMLS# 322798. Lending services may be provided in certain states by Cambria Mortgage. This is not an offer to lend or to extend credit, nor is this a guaranty of loan approval or commitment to lend. The information here may not be up-to-date and may no longer be accurate. Products and interest rates are subject to change at any time due to changing market conditions. Actual rates available to you may vary based upon a number of factors. Consumers must independently verify the accuracy and currency of available mortgage programs. All loan approvals are subject to the borrower(s) satisfying all underwriting guidelines and loan approval conditions and providing an acceptable property, appraisal and title report. The longer the buydown period the greater the cost. This cost must be paid at closing and it must be paid by the seller or the builder or Cambria Mortgage. The borrower may not pay this cost directly. Borrower must qualify at the permanent rate, not the rate the loan is bought down to.