Worried about high-interest rates? Buy now and keep your monthly payments low.
Howard Hanna Mortgage Services’ Rate Reducer is a 2-1 buydown agreement that provides the buyer a low-interest rate for the first year of the loan, a somewhat higher rate for the second year, and the full rate for the third year and beyond. The seller or builder covers the difference between the buyer's payment and the adjusted bought-down rate.
A win-win for both the buyer and the seller:
1. Offering a below-market interest rate for the property will entice more buyers
2. Saves the seller money upfront
3. Saves the buyer money in the long run with lower payments and a temporary lower interest rate
4. Helps hold home values for the area by avoiding a price reduction