Temporary
Rate Buydowns

Make Your First Few Years More Affordable with a Temporary Rate Buydown

 

Looking for a lower monthly mortgage payment, especially in the first few years of your loan? A Temporary Rate Buydown might be the perfect solution.

It gives you a reduced interest rate at the start of your mortgage, so you can ease into homeownership with extra financial breathing room.

A buydown is a great option if you:
 

• Expect your income to increase in the next few years

• Have extra seller credits to use and want a lower fixed rate

• Plan to make renovations, upgrades, or furnish your new home

• Are transitioning from renting and want to ease into mortgage payments
   

You can use a Temporary Rate Buydown on:

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• Conventional primary or second home purchases

• Rate-and-term refinances on primary or second homes*

• FHA and VA primary home purchases

• Manufactured homes (with DU approval)

• Select Jumbo loans
   

*Note: Refinances are eligible for the 1-0 and 2-1 buydown only
 

How can it be paid for?

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• Purchases: The cost of the buydown can be covered by the seller, lender, or even your real estate agent using credits.

• Refinances: You can roll the cost into your loan amount.
   

Choose the option that works best for you:

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• 3-2-1 Buydown: Your rate is reduced by 3% the first year, 2% the second, 1% the third, and then adjusts to the original fixed rate.

• 2-1 Buydown: Reduced by 2% the first year, 1% the second, then adjusts to the original fixed rate.

• 1-1 Buydown: Reduced by 1% for two years, then back to the original rate.

• 1-0 Buydown: Reduced by 1% the first year, then back to the original rate.