3-2-1 Mortgage Buydown Explained | Save $866/Month on Your Mortgage!

🏡 What if you could save $866 per month on your mortgage payment — or help sell your home without dropping the asking price? Temporary mortgage rate buydowns are a powerful tool for homebuyers, sellers, and real estate agents, especially when mortgage rates are elevated. In this video, Ty Smith, Branch Manager with New American Funding, explains exactly how temporary mortgage buydowns work, including the 3-2-1, 2-1, 1-1-1, and 1-0 buydown options. 💰 HERE'S THE EXAMPLE: On a $500,000 home with 10% down and a $450,000 mortgage at a 7.5% fixed interest rate: ✅ Year 1: 4.5% effective rate — Save approximately $866/month ✅ Year 2: 5.5% effective rate ✅ Year 3: 6.5% effective rate ✅ Years 4–30: 7.5% note rate That's more than $10,000 in reduced mortgage payments during the first year! FOR HOME SELLERS: Instead of reducing your home's asking price by $20,000, consider offering a seller-funded temporary mortgage buydown. Depending on the buyer's financing and qualifications, this strategy could provide greater short-term monthly payment relief and help your listing stand out. FOR HOMEBUYERS: A temporary buydown can make your initial mortgage payments more manageable while you settle into your new home. If mortgage rates decline, refinancing may be an option, although it's never guaranteed. FOR REAL ESTATE AGENTS: Understanding temporary buydowns gives you another strategy to discuss with buyers and sellers when negotiating offers. ⏱️ VIDEO CHAPTERS 00:00 – Why buyers, sellers, and agents need to understand buydowns 00:16 – Four types of temporary mortgage buydowns 00:29 – How temporary buydowns work 00:46 – Understanding the 3-2-1 buydown 01:06 – How to save $866 per month 01:38 – How seller-funded buydowns work 01:57 – $500,000 home purchase example 02:07 – Seller buydown vs. $20,000 price reduction 02:34 – How buydowns can help sell your listing 03:13 – Understanding the 2-1 buydown 03:26 – Refinancing opportunities 03:34 – 1-1-1 and 1-0 buydown options 03:50 – Get your personalized mortgage calculations 📲 WANT ME TO RUN THE NUMBERS FOR YOU? Whether you're buying a home, selling a property, or representing clients, send me a message with the word BUYDOWN. I'll help you compare the options and see what makes sense for your situation. Ty Smith | Branch Manager New American Funding 📞 832-439-8662 🌐 https://ApplyWithTy.com NMLS #252798 Illustrative mortgage example only. The 7.5% note rate is not a current rate quote or commitment to lend. Payment savings reflect temporary reductions in principal and interest payments. Actual program availability, qualifying requirements, funding sources, and seller contribution limits vary. Refinancing is not guaranteed. Equal Housing Lender. #321Buydown #MortgageBuydown #MortgageTips #HomeSellingTips #HomeBuyingTips #SellerConcessions #HoustonRealEstate #NewAmericanFunding