Programs offer lower interest rates for the first few years of the loan
A&D Mortgage has rolled out new temporary rate buydown programs designed to give high-net-worth borrowers “more flexibility” with their home financing options, the non-QM lender announced this week.
“Temporary rate buydown plans are a good fit for borrowers who have the capacity for higher earnings within a few years of obtaining a mortgage,” the company said in its Press release. “Buydown plans allow borrowers to benefit from temporary subsidies of the monthly payment of principal and interest. By offering these products, brokers help borrowers get access to lower initial payments, and the stability of predictable payment increases.”
A&D’s rate buydown products are available for owner-occupied, second-home conventional loans, third-party or seller-paid options, and non-QM loans. The programs include:
- 3-2-1 buydown: A buydown of 3% in the first year, 2% in the second year, 1% in the third year, then back to the original locked rate in the fourth year for the duration of the term.
- 2-1 buydown: A buydown of 2% in the first year and 1% in the second year, then back to the original locked rate in the third year for the duration of the term.
“We’re excited to offer these new rate buydown products to our customers,” A&D Mortgage CEO Max Slyusarchuk said. “By providing a lower interest rate for the first few years of the loan, we can help them save money and build equity more quickly. We’re committed to helping our customers succeed, and this is just one more way we can do that.”
