A buydown is a type of financing where the buyer or seller pays extra points (also called discount points) to reduce the interest rate on a loan. Buydowns make it easier to qualify for a loan because they lower a loan's interest rate. They can also allow you to buy more house for your money.
Generally, we can offer a permanent buydown which lets you pay extra points to get a low interest rate over the life of your loan.
A permanent buydown can be paid by the seller or the builder as an incentive to finalize a sale by creating lower monthly payments. Sellers can also benefit from assisting with a buydown with a difficult to sell property or during slower market conditions. It increases the buyers ability toqualify for a loan, therefore, allowing the home to be sold quicker. Plus, a buydown offer is usually less than a price reduction on the home. Sellers are limited to the amount of sales concessions they can make depending on the loan for which you have applied. See one of our mortgage specialist to determine the maximum seller contributions that can be made toward the financing of your new home.
MEMBER FDIC
Rates vary daily and are subject to change without notice.
All loans are subject to credit approval, verification, and collateral evaluation. Initial decision is subject to you meeting specific underwriting requirements and final approval will be based upon you satisfying those requirements. Loans originated by Troy Bank and Trust Company.
This information is provided for illustrative purposes only and does not constitute an application. This notice does not guarantee loan approval, nor is it an offer or commitment to make a loan to you on the above terms. The APR, fees, and closing costs are all estimates based on Troy Bank and Trust Companys normal and customary fees and typical tax and insurance costs in the stated property's vicinity.
Troy Bank & Trust Company, Inc (NMLS 409724) 1000 Hwy 231 S P. O. Box 967 Troy, AL 36081-3105
