3-2-1 Interest Rate Buydown

A 3-2-1 interest rate buydown has quickly become a popular option to help reduce monthly mortgage payments during the first three years of home ownership. This is a great option because within 1-2 or 3 years down the line, borrowers can always refinance their mortgage whenever we have an interest rate improvement and any outstanding buydown funds can be applied to the principal of the loan. Since sellers are now more open to providing seller concessions and price reductions to entice potential buyers, the concessions can be applied towards an interest rate buydown and if any funds are left over from concessions, they can be used to help cover closing costs. In our current real estate and mortgage environment, my professional opinion is that the 3-2-1 interest rate buydown is a game changer. We still offer traditional interest rate buydowns which will reduce you rate and payment for the full 30-year term of the loan however, I am not recommending this at the moment because if you refinance within a couple years, you will lose the funds paid towards a traditional buydown. Remember, the savvy investor looks for opportunity and the time is now. While there are those who sit on the fence waiting for the rates to come down or the real estate market crash, I’ve been hearing about for many years, the savvy investor knows how to buy in any market. Let’s face it, keeping your money in the bank or in your retirement account doesn’t have the growth potential real estate does at the moment. Every scenario is different, and I’d be more than happy to go over all your options in detail with your specific scenario. I am a licensed mortgage lender who has helped many families build wealth through real estate investing and always keep in touch (even after closing) when I see any money saving options. Reach out if you have any questions about the 3-2-1 interest rate buydown and/or if you’d like to begin your pre-approval process.