First Time Home Buyers – Save on your mortgage the first two-years!

Minneapolis, MN: A great tool most homebuyers have never heard of is known as a 2/1 buydown. Start your loan with a 2% lower rate the first year, 1% lower the next year, and then the normal rate for the remainder of the loan with a 2/1 buydown from Cambria Mortgage. Let us help you make those first couple of years as a homeowner more affordable.

This lower initial rate results in smaller monthly payments during the early years of the mortgage, which can be especially helpful for buyers who anticipate their income will increase over time or who want to ease into homeownership. The buydown can provide more breathing room in the budget, allowing buyers to save for future expenses or invest in home improvements, while still securing a long-term mortgage at a fixed rate after the initial period.

A 2/1 mortgage buydown offers significant short-term financial relief for homebuyers by reducing the interest rate in the first two years of the loan.

As an example, assume the current 30-year fixed mortgage rate is 7%, a homebuyer could obtain a mortgage with a rate of 5% for year one, 6% for year two, and then 7% starting in year three and for the remaining term.

Using the same scenario, if you took out a $300,000, 30-year mortgage, your monthly mortgage payment during the first year would be $1,610. In the second year, your payment would go up to $1,799. Your monthly payment would then rise to $1,996 in the third year.

Keep in mind this example doesn’t include taxes and insurance, so your actual monthly payment payment will be higher.

Next, the buy down commonly isn’t free.  Basically someone needs to pay all the ‘saved’ payment you are not paying up-front. Commonly, you’ll see builders offer this with a new construction home, but understand, where they simply add the cost of the buydown into your new home price.  You can also try getting a regular home seller to pay this too. Sometimes they will, but again, understand the cost is always worked into the sales price of the home.

With the Cambria 2/1 buyer down, we cover the cost, so it doesn’t add a penny to the cost of your home. Lower payments for the first two-years without the cost!  Talk about a Win Win!

We offer this program in the following states of CO, FL, IA, MN , ND, SD, WI, only.

To see if you qualify, we simply need you to complete a no cost, no obligation online application. You can call (651) 552-3681,  or schedule an appointment for a phone, office, or Zoom appointment right online, or for faster service, simply complete an online application