Lower Rate & No Wait

November 15, 2023 Homes By Dickerson

Have you been holding off on buying your dream home because of interest rates? We have good news! You don’t have to wait much longer. Homes by Dickerson is working with a trusted lender to offer you a rate buydown incentive. You can get a rate buydownon the interest rate for homes that close by the end of March!

Buy down your rate on select designer homes with our rate buydown offer.

What is A Rate Buydown?

Temporary rate buydown programs offer a reduced mortgage rate on a 30-year fixed-rate mortgage for a set amount of time, which can help lower the initial loan payments. After the temporary buydown period has ended, the mortgage returns to its original rate by gradually increasing by 1% each year.

How Does it Work?

If you are offered a 2-1 buydown, it allows you to enjoy reduced interest rates for the first two years of your mortgage. The interest rate drops by 2% in the first year, 1% in the second year, and then returns to the full interest rate by the third year. The costs of the payment reduction are paid at loan closing. The servicer will hold the fees collected at closing in escrow and will remit the funds from this account to cover a portion of the monthly payments for the 2-year buydown term. Buydowns allow you to more easily qualify for mortgages with a lower interest rate.

EXAMPLE OF A RATE BUYDOWN:

Let’s say you qualify for a 3-2-1 buydown for a 30-year fixed-rate mortgage with a 7.5% interest rate. Your buydown would lower your rate to 3.5% in the first year, 4.5% in the second year, and 5.5% in the third year. Then, your loan’s original 7.5% rate would apply from the fourth year onwards until your loan is paid in full or you refinance.