Increase your buying power with a temporary rate buydown. Lower your initial mortgage payments and make your dream home more affordable in today's market.
Intercap Lending offers temporary rate buydowns, a strategic tool that can give you more buying power in today's competitive market. Here's how it works: a rate buydown temporarily reduces your interest rate for the first few years of your mortgage. Think of it like a discount on your monthly payment, freeing up some of your budget at the beginning of your mortgage.
By lowering your initial monthly payments, a rate buydown can make your dream home more affordable, especially in a market with high interest rates.
Perfect for buyers who expect their income to increase after the first year.
Provides relief for two years, helping you adjust to homeownership costs.
Offers the most significant first-year savings, maximizing your initial buying power.
The most comprehensive option, providing three years of payment relief.
A temporary rate buydown is typically funded by the seller, builder, or lender as a concession to help you qualify for the loan or make the purchase more attractive. The buydown reduces your interest rate for a specified period (usually 1-3 years), lowering your monthly mortgage payments during that time. After the buydown period ends, your interest rate returns to the full note rate for the remainder of the loan.
Temporary rate buydowns are ideal for first-time homebuyers, those with variable income, or anyone looking to maximize their buying power in the short term. They're particularly valuable in high-interest-rate environments where even a small reduction in your initial payments can make a significant difference in your monthly budget.
It's important to plan for when the buydown period ends and your payment increases to the full note rate. Most buyers use the buydown period to build equity, improve their credit, or increase their income so they're prepared for the higher payments. John Naccarato can help you understand the long-term implications and ensure you choose the right buydown program for your situation.
Typically, the seller, builder, or lender pays for the rate buydown as part of the transaction. It's negotiated as part of your purchase agreement or loan terms.
After the buydown period expires, your interest rate adjusts to the full note rate, and your monthly payment increases accordingly. You should plan for this increase when deciding which buydown program is right for you.
Yes, you can refinance at any time. Many buyers use the buydown period to build equity and improve their credit, then refinance to a better rate when the buydown expires.
Rate buydowns are available for most conventional loans and some government-backed loans (FHA, VA, USDA). Availability depends on your loan program and lender. John can help you determine if you qualify.
Savings depend on the buydown program you choose and current interest rates. A 2-1 buydown, for example, can save you thousands in the first two years. John can calculate your specific savings based on your loan amount and program.
No, a rate buydown doesn't directly affect your credit score. However, making on-time payments during the buydown period can help improve your credit over time.
Let John help you understand how a rate buydown can increase your buying power and make homeownership more affordable.