Flexible Options Beyond Traditional Mortgages
If you’re seeking mortgage alternatives beyond the conventional 30-year fixed-rate loan, consider the innovative options of Buydowns and Hybrids. These choices provide flexibility and potential cost savings, catering to your unique financial goals.
Buydowns: A Closer Look
What Is It?
- A 30-year mortgage with a fixed rate, but with a lower initial rate for the first few years
Example:
- If you qualify for a 7% mortgage, a 2-1 Buydown could offer a 5% rate in the first year and a 6% rate in the second year. From the third year onwards, the rate stays fixed at 7%.
Cost:
- While there is a cost for the buydown, it can be negotiated in the sales contract, with the possibility of the seller covering the cost.
Why:
- The Buydown option allows you to gradually settle into your final mortgage payment. Could open room in your budget for new house items like furniture. Plus, if you refinance during the Buydown period you can get cash back
Hybrids: Unveiling the Potential
What Is It?
- A 30-year mortgage with a fixed interest rate lower than that of a traditional fixed-rate loan for an initial period (typically 5 to 7 years).
Example:
- After the initial period, the interest rate can fluctuate based on market interest rates.
Cost:
- No extra cost upfront
Why:
- If you do not see yourself in the home for more than 5-7 years you can enjoy a lower fixed rate during that time
Are these options right for you? Let’s find out.
Personalized solutions
are fast and easy!
- Spend less than 1 minute to share basic information about your goals.
- We will contact you within 24 hours with your options at no charge to you.
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