3-2-1 buydown

3-2-1 Buydown

Posted by on Feb 28, 2011 in 3-2-1 buydown

A 3-2-1 buydown is similar to the 2-1 buydown but spread over a longer period of time with much easier payments for the first few years. An Example: Long term rate of 7%. 1st year at 4%, 2nd year at 5%, 3rd year at 6% and 4th year would go to the full rate of 7%, let’s compare that to a 2-1 buydown in which the first year your mortgage payments will be based on a rate that is 2% …

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