What is a Buydown?

If interest rates are the only thing holding you back from buying a home, we’ve got some great news! Did you know that you could request a “buydown” from the seller?

This technique can reduce the homebuyer's mortgage payment temporarily in exchange for an upfront cash deposit, usually provided by the seller.

A buydown could reduce your mortgage payment temporarily, giving you time to accumulate and save up for future mortgage payments.

We have four buydown programs, each allow buyer's to lock in a reduced interest rate for at least one year, where they will see a lower mortgage payment.

3/2/1 Buydown: This option reduces the interest rate by 3% in the first year, 2% for the second year, and then 1% for the third year, which is then followed by the final note rate for the remainder of the term (available for conventional loans only).

2/1 Buydown: This option reduces the interest rate by 2% in the first year, and then 1% for the second year, which is then followed by the final note rate for the remainder of the loan term.

1/1 Buydown: This option reduces the interest rate by 1% for the first two years, which is then followed by the final note rate for the remainder of the loan term.

1/0 Buydown: This option reduces the interest rate by 1% for the first year which is then followed by the final note rate for the remainder of the loan term.

Benefits of Rate Buydowns
- Reduced interest rates and monthly payments for the first year or two (or three) of the loan
- Ease into a permanent rate while your home potentially builds equity
- Move in with more cash to spend on necessities and home improvements
- Can be used with most conventional or FHA loans (3/2/1 buydown available on conventional loans only)

Ready to get started? Contact your Castle & Cooke Mortgage loan officer today to take advantage of the changing market!