Real estate blog entries tagged with 21 buydown by Joe Long - Purchase Perfect (Waterstone Mortgage)

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Home : Blogs : Joe Long - Purchase Perfect : Joe Long - Purchase Perfect's Blog : Tag "21 buydown"

21 buydown: Clearing the Fog: Explanation of the 2-1 Buydown - 11/11/08 02:42 PM

Below is a detailed explanation of a 2-1 rate buydown for a 30 year fixed mortgage, and how it can be advantageous for a builder/broker to offer this program to a potential buyer.
Basically, a 2-1 buydown means the note rate on the loan is "bought" down, 2% for the first year, 1% for the second year and for years 3-30 the loan "caps," at it's fully indexed market rate. This loan is particularly appealing to those borrowers skeptical of the current mortgage market.
Taking a loan significantly lower than the current market rate in effect opens a 3 year window … (3 comments)

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Joe Long - Purchase Perfect

Madison, WI

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Waterstone Mortgage

Address: 3 Point Place, Madison, WI, 53719

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