11/18/2022
How to get 2% less than the current interest rate your 1st year, and pay 1% less the 2nd year, consider the illustration below:
Jones and Samantha were so excited when they finally bought their first home. They had been saving up for years and were finally able to afford a mortgage. However, the interest rate was much higher than they had anticipated, which made the monthly payments quite daunting.
Luckily, they were referred to a loan specialist who was able to help them structure their loan in a way that would reduce the amount of interest they would have to pay during the first two years. This bought them some time to hopefully see the interest rates drop by the second year of their loan.
The seller was happy to help out with the cost of the interest buy down, and Jones and Samantha breathed a collective sigh of relief. They knew that with a little bit of hard work, they could make their new home into a real home sweet home.