Did You Know?

With prices continuing to rise, did you know you can take advantage of a temporary lower rate to help acclimate to your payments?

The market is filled with first-time buyers anxious to own a home, yet fearful of the expected payments due to higher rates and prices. These buyers (and frankly, any mortgage borrower) should consider something called a “Temporary Buydown.”

What is a Temporary Buydown?
A Temporary Buydown allows borrowers to reduce their effective monthly payment for a limited period through a temporary buydown of the interest rate. Just as points can be used to permanently reduce the interest rate on a mortgage, points (paid by the seller, the borrower, or even the lender!) can be used to temporarily bring down the interest rate, potentially by several percentage points, for the first one to three years of the mortgage. The resulting mortgage payment could be significantly lower than what the borrowers were fearing! This option could make it easier for home buyers to afford their new home and acclimate to their budget.

If you would like to learn more about Temporary Buydowns, please contact me!

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Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, The Daily News, Anton Press, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.