TEMPORARY INTEREST BUYDOWN PROGRAM is giving extra flexibility with a lower monthly payment by lower 
YOUR interest rate at the start of the loan. It’s a great option for almost any borrower, especially those who:

1. Expect an increase in their income in the next few years
2. Have excess seller concessions to use and want to take advantage of a low fixed rate
3. Are looking to do renovations, make upgrades, or buy furniture for a new home
4. Are going from renting to buying and want to ease into your mortgage with a lower payment

Temporary Rate Buydowns are available for:

1. Conventional primary and second home purchases
2. FHA and VA primary home purchases
3. Prime Jumbo 30-year fixed primary and second home purchases

Choose between your seller- or lender-paid 1-, 2- and 3-year Temporary Rate Buydown options:

1. 3-2-1 buydown: A buydown of 3% in the first year, 2% in the second year, 1% in the third year, then back 
to the original locked rate in the fourth year for the duration of the term.
2. 2-1 buydown: A buydown of 2% in the first year and 1% in the second year, then back to the original locked rate 
in the third year for the duration of the term.
3. 1-1 buydown: A buydown of 1% in the first 
two years, then back to the original locked rate in the third year for the duration of the term.  
4. 1-0 buydown: A buydown of 1% in the first year, then back to the original locked rate in the second year for the duration of the term.

(Lower Interest Rate) BUYDOWN
Here’s an example of the potential savings on a 3-2-1 seller-paid buydown:  
3-2-1 Lower Interest Rate Buydown on a $350,000 Loan for a Borrower with a 700 FICO and 90% LTV

3-2-1 Temporary Rate Buydown Interest Rate Monthly Payment* Monthly Savings Yearly Savings
1st Year 3.75 % $1,620.90 $649.19 $7,790.28
2nd Year 4.75 % $1,825.77 $444.32 $5,331.84
3rd Year 5.75 % $2,042.50 $227.59 $2,731.08
4th Year to 30th Year 6.75 % $2,270.09 $0 $0
TOTAL $15,853.20

*The principal and interest payment on a $350,000 30-year Fixed-Rate Loan at 6.750% and 90% loan-to-value (LTV) is $2,270.09. The Annual Percentage Rate (APR) is 7.138% with estimated finance charges of $5,600. The principal and interest payments, which will continue for 360 months until paid in full, do not include taxes and home insurance premium, which will result in a higher actual monthly payment. Rates current as of 11/16/22. Subject to borrower approval. Some exclusions may apply. 

(Lower Interest Rate) JUMBO BUYDOWN
Here’s an example of the potential savings on a 2-1 seller-paid buydown:
2-1 Lower Interest Rate Buydown on a $1,200,000 Loan for a Borrower with a 700 FICO and 80% LTV

2-1 Temporary Rate Buydown Interest Rate Monthly Payment* Monthly Savings Yearly Savings
1st Year 4.750 % $6,259.77 $1,523.41 $18,280.92
2nd Year 5.750 % $7,002.87 $780.31 $9,363.72
3rd Year to 30th Year 6.750 % $7,783.18 $0 $0
TOTAL $27,644.64

*The principal and interest payment on a $1,200,000 30-year Fixed-Rate Loan at 6.750% and 80% loan-to-value (LTV) is $7,783.18. The Annual Percentage Rate (APR) is 6.848% with estimated finance charges of $12,000. The principal and interest payments, which will continue for 360 months until paid in full, do not include taxes and home insurance premium, which will result in a higher actual monthly payment.Rates current as of 12/20/22. Subject to borrower approval. Some exclusions may apply.
The borrower must qualify for the full monthly payment (before the buydown rate is applied)
For the seller-paid option, seller concessions are deposited as a lump sum into a buydown account. 
A portion of this sum is released each month to reduce the borrower’s monthly payments.
Use the Temporary Rate Buydown Calculator in The Source to check borrower eligibility

Information is subject to change. Certain restrictions apply. Subject to borrower approval.
*2021 HMDA, compiled by AIME and NDP Analytics. Comparisons based on conventional conforming 30-year fixed loans for debt-to income ratio 
41-45% between top 10 wholesalers and top 10 nonbank retailers; low income defined as less than $52,200; interest savings assumes full term of loan.