Temporary Buydowns
Temporary Buydowns
Our 1-year, 2-year and 3-year buydown options can help you create more affordable monthly payments at the start of your loan and ease into your full mortgage payment.
What are temporary buydowns?
Mortgages with buydown plans have lower initial payments, a temporarily reduced interest rate and no balloon payments at the end of your loan term. The structure of the buydown will determine your payment increases, making them predictable throughout the life of your loan.
Buydowns can make the entry to homeownership more accessible and help you keep your options open when searching for homes. Depending on your unique situation, starting with a reduced payment may also give you more flexibility and cash flow for renovations or other home purchases.
Ease into your mortgage with lower initial payments
Try our temporary buydown payment calculator to see how much you may save.
Temporary buydowns options
Guild has three temporary buydown options to help you get settled at the start of your loan.
- 1-year buydown (1-0): The rate is bought down for the first year.
- 2-year buydown (1-1 or 2-1): The rate is bought down for the first two years.
- 3-year buydown (3-2-1): The rate is bought down for the first three years.
How it works
Here is the breakdown for our 1-year, 2-year and 3-year buydowns:
1-year buydown
Year 1
Payment is 1% less than the note rate
Year 2
and going forward
Payment is at the note rate
2-year buydown
Year 1
Payment is 1% or 2% less than the note rate
Year 2
Payment is 1% less than the note rate
Year 3
and going forward
Payment is at the note rate
3-year buydown
Year 1
Payment is 3% less than the note rate
Year 2
Payment is 2% less than the note rate
Year 3
Payment is 1% less than the note rate
Year 4
and going forward
Payment is at the note rate
Temporary buydown details
Guild has three temporary buydown options to help you get settled at the start of your loan.
- Borrower-, lender-, seller- and third party-paid options
- Primary purchase transactions
- Conventional, FHA, USDA, VA and Jumbo* financing options.
*Jumbo temporary buydowns are only offered as seller or lender paid up to 2 years.
Borrower must meet program eligibility and qualify based on the note rate of the program selected. All loans subject to underwriter approval; terms and conditions may apply. Subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.
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Interested in learning more? Take the first steps with our pre-qualification calculator. |