Do you want to buy a home with a fixed rate mortgage, but wish you could take advantage of the low introductory rate of an adjustable rate mortgage?
Through our 2-1 Temporary Buydown Program, you can buy a home with a fixed rate loan that features lower effective interest during the initial years.
That means that you get benefits similar to what you would with an ARM, without the drawbacks.
How the 2-1 Temporary Buydown Program Works
The 2-1 Temporary Buydown Program lets you purchase a home with a fixed rate mortgage, but pay less on interest during the first two years.
- Your effective interest rate during the first year is up to 2% lower than the full rate.
- Your effective interest rate during the second year is up to 1% lower than the full rate.
- From year three onward, you pay the full fixed rate on your loan.
If you qualify for the 2-1 Temporary Buydown Program, you will have a buydown account. Seller concessions go into that account as a lump sum. Every month, money comes out of that account to offset your interest rate as described above.
Benefits of the 2-1 Temporary Buydown Program
- Pay a reduced interest rate starting out, similar to how you would pay a low introductory rate on an adjustable rate mortgage.
- Unlike an adjustable rate mortgage, this mortgage will not potentially balloon at the end of the first two years. You will simply start paying the full, fixed rate. That means you have more stability and predictability than an ARM would offer.
- You can put the money you save during the first couple of years toward home repairs or upgrades, investments, or other purposes.
- If you are earning a lower income now than you expect to in a few years, the 2-1 Temporary Buydown Program can help you keep your finances more liquid while you are waiting for your pay to increase.
Additional Program Details
Here are a few more important things to know about the 2-1 Temporary Buydown Program.
- You can use this product when purchasing a primary residence or second home with a conventional mortgage. Also available for an FHA and VA loan on a Primary Residence.
- This program is also available for HomeReady®, HomePossible® and High Balance mortgages.
- You must be able to afford the full payment amount at the time you apply, not just the reduced payment amount.
Save on Interest with the 2-1 Temporary Buydown Program Now
If you are ready to save on interest during your first two years of homeownership while looking forward to the stability of a fixed rate over the long term, the 2-1 Temporary Buydown Program may be right for you.
Ask us your questions about the 2-1 Temporary Buydown Program, or apply now. To get started, please call McGowan Mortgages today at (816) 631-9687 to schedule your consult. We work with homebuyers in Kansas City and throughout the country to make it easy and affordable to buy a home.