![]() ![]() ![]() ![]() If you use a fixed-rate loan (the only type of mortgage you should use, by the way), you’ll keep that interest rate until you pay off your house or refinance. Once those three years are up, your mortgage will return to the standard interest rate you agreed on when the mortgage was finalized. In exchange for an up-front fee (paid in cash), a lender will lower the interest rate on your mortgage by 3% in the first year, 2% in the second year, and 1% in the third year-that’s where the 3-2-1 part comes from.ĭave Ramsey recommends one mortgage company. That way, you’ll be able to make the best decision for you and your family when you buy a house.Ī 3-2-1 mortgage buydown is a way for home buyers to reduce their interest rate in the first three years of their mortgage. Let’s break it all down! We’ll talk about what 3-2-1 buydowns are all about, how much they cost, who pays for them, and-most importantly-whether they’re a good idea. If your lender, seller or builder is offering you one of these buydowns, you probably have two questions on your mind: What exactly are 3-2-1 mortgage buydowns, and are they a good idea? While 3-2-1 buydowns aren’t new, they have gotten a little more popular lately. So, to help buyers deal with those challenges, some mortgage lenders and sellers have gotten a little creative and started pushing something called a 3-2-1 mortgage buydown. House prices have gone up a ton, and mortgage interest rates have shot higher than the Empire State Building. This whole home-buying thing has gotten just a little more difficult over the last few years. ![]()
0 Comments
Leave a Reply. |