Thinking About Buying but Worried About the Monthly Payment?

Buying a home is a big decision, and the monthly payment is a big part of that. You may be ready to move, but wondering if the numbers will work for you.

I wanted to share this information from Bonnie Jackson with Atlantic Coast Mortgage because there are options you may not know about. One of those is a temporary buydown, which can help lower your mortgage payment during the first year or first few years of your loan.

What does that actually mean?

With a temporary buydown, money is paid upfront to cover part of your payment for a set amount of time. Depending on the loan and the terms of your purchase, a seller or builder may be able to help cover that cost.

For example, with a 2-1 buydown, you have a lower payment in the first year, it increases in the second year, and you begin paying the full amount in the third year. Your actual loan rate stays the same—the buydown funds make up the difference during those first two years.

Bonnie’s graphic explains a few of the different options.

Is it something worth considering?

It could be! Moving comes with expenses, so having a lower payment at the beginning may be helpful. But you also need to know what your payment will be after the buydown ends and be comfortable with that amount.

I would want your lender to show you all the numbers and compare your options. Would help with closing costs be more beneficial? Would a different loan option make more sense? Those are conversations worth having before you make an offer.

It’s also something we can discuss when negotiating.

A seller contribution toward a buydown may be something we can ask for as part of an offer. It will depend on the home, the seller, and what your loan allows, but it’s worth looking into.

Raymond and I want you to have the information you need to make a decision you feel good about. Sometimes that means getting a few questions answered and seeing what is possible before deciding on your next step.

If you’ve been thinking about buying, reach out. We’d love to talk about what you’re looking for and connect you with Bonnie to go over the financing options.

Jennifer & Raymond Hoyle
Hoyle Realty Group | Real Broker, LLC

Buydown availability and terms vary by loan program and borrower eligibility.