HOW THE PAYMENT STEPS DOWN
PRINCIPAL & INTEREST ONLY · TAXES & INSURANCE NOT INCLUDED
| YEAR | RATE | MONTHLY SAVINGS | P&I PAYMENT | ANNUAL SUBSIDY |
|---|
TOTAL BUYDOWN COST$0
ESTIMATES FOR ILLUSTRATION ONLY — NOT A RATE QUOTE, LOAN COMMITMENT, OR OFFER OF CREDIT. WITH A TEMPORARY BUYDOWN, BORROWERS MUST QUALIFY AT THE FULL NOTE RATE — NOT THE REDUCED RATE. INTEREST RATES AND PRODUCTS ARE SUBJECT TO CHANGE WITHOUT NOTICE AND MAY OR MAY NOT BE AVAILABLE AT THE TIME OF LOAN COMMITMENT OR LOCK-IN. ALL INFORMATION MUST BE VERIFIED PRIOR TO LOAN APPROVAL. BORROWERS MUST QUALIFY AT CLOSING FOR ALL BENEFITS.
VS. A PERMANENT BUYDOWN — SAME BUDGET
Spends the same dollars as the temporary buydown on permanent discount points instead. The note rate already includes 1 point; whatever's left buys down the permanent rate, snapped to the nearest eighth.
PERMANENT RATE ACHIEVED
—
PERM MONTHLY SAVINGS
—
vs. note payment, forever
CROSSOVER VS. TEMP
—
same budget, when perm total wins