Current mortgage rates have some potential home owners on the fence, wondering when it will be a good time to make that big move to buy real estate. A 3-2-1 buydown program may be the answer.
A 3-2-1 buydown temporarily lowers the mortgage interest rate by 3 percentage points the first year, 2 percentage points the second year, and 1 percentage point the third year. At the end of the third year, the mortgage reverts to the original fixed rate. 
For example, with a 6.95%, 30-year mortgage, the interest rate would be 3.95% in year one, 4.95% in year two, 5.95% in year three, and 6.95% for the remaining 27 years.
This type of program offers some relief to buyers who can either grow into the mortgage payment and use that savings constructively during the first three years, or possibly refinance before the permanent interest rate kicks in. 
A 3-2-1 buydown incentive can be paid for by the seller, home builder or lender. In some cases, employers are willing to pay for a buydown to relocate an employee.
Current interest rates have pushed many investors out of the picture, so there is less competition for individual buyers. At the same time, you may find sellers are eager to make a deal, offering lower prices and concessions. 
If I can be of service to you, your friends or family, please give me a call. We’re ready to run the numbers and discover what option works best for you.