How a 1-0 Buy down Saves Your Clients $$$

Education & Training with Jody Bruns, LLC NMLS 831033

Do you have any real estate clients who could benefit from a Buy Down on their interest rate? Of course you do - but do you understand how a Buy Down can help them?


A Temporary Buydown is a mortgage loan option that reduces the borrower's interest rate for a specific amount of time.


The main benefit of this type of mortgage is to attract potential homeowners who expect to be making substantially more income in the near future. Another benefit of this type of mortgage is that it often means the buyer ends up paying less for the property than the seller's listed selling price. Exactly how much is saved will depend upon the size and length of the buy down payment.  


Typically, there is a cost associated with the buy down that equals the amount of the interest savings. ($3,000 per the above example.) The cost can be paid by the borrower, seller, or lender.


New American Funding offers a 1-0 Buy down at NO COST TO BORROWER


That saves your clients thousands of dollars the first year. For example:


$300,000 loan amount

3.375% 30 year fixed interest rate year 1:  $10,125 total interest paid

4.375% 30 year fixed interest rate Year 2+: $13,125 interest paid/year (APR is based off of 4.375% at 4.459%)


Savings of $3,000 (1% of loan amount J ) / $250 per month


  • If your clients are purchasing a home, that $3,000 savings the first year can almost recoup their total closing costs!
  • If refinancing, the breakeven point is pretty much year 1!


We offer the 1 year buy down on all conforming loans, purchase or refinance, for clients with a credit score of 740+, Owner Occupied and Single Family Homes, 30 day lock.



Have a great weekend!



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Niche Marketing for Real Estate & Mortgage Professionals


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Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

This sounds like a great program and a good way for first time buyers to ease into the habit of making monthly mortgage payments.  

Jun 17, 2016 03:59 AM #1
Colin Snyder

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Aug 28, 2019 03:29 AM #2
Sandra Swift
Manager - New York, NY

Credit card processing for a small business involves many things, such as the verification of the consumer's credit card number, expiry date, and other data connected with credit cards.

Nov 27, 2019 01:08 AM #3
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Jody Bruns, CDLP

Niche Marketing Expert in Real Estate & Mortgage
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