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mortgage education: How to pay off your mortgage without making extra payments using a 2-1 Buydown - 08/21/08 09:06 PM
Please read the blog titled "What is a temporary buydown and why is it beneficial?" to get a better understanding of the buydown product prior to reading this entry.
With DNJ Mortgage's temporary buydown products, we are prepaying the difference in interest between the note rate and the interest rate the first two years.  That prepaid interest is held in an escrow account by the lender.  Each month that you make a payment, the difference in interest for that month is deducted from the escrow account.  Since the goal with this product is principal reduction, you want to make as few … (3 comments)

mortgage education: What is a temporary buydown and why is it beneficial? - 08/21/08 09:01 PM
There are two types of buydown programs: temporary and permanent. 
A permanent buydown is where the borrower or seller pays discount points to the lender to have a lower interest rate for the term of the loan.  Often a permanent buydown does not make financial sense due to the amount of time needed in that loan to recoup the costs of the buydown.
A temporary buydown is where the borrower, seller, or lender pre-pays interest for the first one to three years in order to have a lower interest rate.  The most common types of temporary buydowns are:
3-2-1 buydown 2-1 buydown … (0 comments)

 
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Cari DeCandia

Raleigh, NC

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Address: 1150 SE Maynard Rd, Ste. 250, Cary, NC, 27511

Cell Phone: (919) 302-6413

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