Worried about high-interest rates? Buy now and keep your monthly payments low.
Howard Hanna Mortgage Services' Rate Reducer is a 2-1 buydown agreement that provides the buyer a low-interest rate for the first year of the loan, a somewhat higher rate for the second year, and the full rate for the third year and beyond. The seller or builder covers the difference between the buyer's payment and the adjusted bought-down rate.
A win-win for both the buyer and the seller:
- Offering a below-market interest rate for the property will entice more buyers
- Saves the seller money upfront
- Saves the buyer money in the long run with lower payments and a temporary lower interest rate
- Helps hold home values for the area by avoiding a price reduction
30 year fixed rate loan with 20% down payment. Year one interest is 5.25%, monthly payment is $1,656.61. Year two interest is 6.25% monthly payment is $1,847.15. Year three and beyond interest rate is 7.25% and monthly payment of $2,046.53. Monthly principal and interest assumes availability of buydown funds; consumer is responsible for full payment if funds are not available. Taxes and insurance premiums not included—actual payment obligation will be greater. APR is based on secondary market conditions and subject to change. Effective 7/31/2023.