Reduce Your Interest Rate and Monthly Payments

Did you know you can lower your initial monthly payments and build equity at the same time with a buydown mortgage?  Our 2-1 buydown program reduces your payment for the first 2 years of your loan!

How does a Buydown Mortgage work?

Your builder or independent seller contributes an upfront amount, called a buydown, to cover the difference in the payment reflected on the mortgage note and the reduced payment amount you will be responsible for in the first 2 years.

The monthly billing statement will reflect a reduced payment amount due from the borrower, and a portion of the buydown subsidy that was paid by the seller will be applied each month, for up to 24 months, to cover the full amount.

Does a Buydown reduce your interest rate?

The buydown subsidy effectively reduces the interest rate on the loan for the first year of the loan by 2% and reduces the interest rate in the second year by 1%. In year 3, and for the remaining life of the loan, the borrower becomes responsible for the full payment amount reflected on the mortgage note.

GMFS Mortgage offers 3/2/1 Buydown Mortgage Programs.

Talk with your local GMFS Mortgage loan officer to see how a buydown program could benefit you!

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Interest rates and annual percentage rates (APRs) are based on current market rates, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables – call for details. APR reflects the effective cost of your loan on a yearly basis, taking into account such items as interest, most closing costs, discount points (also referred to as “points”) and loan-origination fees. One point is 1% of the mortgage amount (e.g. $1,000 on a $1000,000 loan). Your monthly payment is not based on APR, but instead on the interest rate on your mortgage note.