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Unlock Savings with Greenwood Homes and Gray Fox Mortgage’s Rate Buydown Program
October 7, 2024
At Greenwood Homes, we understand that building your dream home is a significant investment, and we’re committed to helping you make it as affordable as possible. That’s why we’ve partnered with Gray Fox Mortgage to offer a Rate Buydown Program—designed to save you money on your mortgage payments, especially in the critical first few years of homeownership. The best part? Greenwood Homes will cover the cost of the buydown, giving you peace of mind as you settle into your new home.
What Is a Rate Buydown?
A rate buydown is a financing option that allows you to temporarily reduce your mortgage interest rate for the first few years of your loan. This reduction in interest means lower monthly payments, which can make a big difference in your budget, especially in the early stages of homeownership when you may have other expenses to manage, such as furnishing your new home or adjusting to new utility costs.
How It Works
Our Rate Buydown Program, in partnership with Gray Fox Mortgage, works by lowering your mortgage interest rate for the first 1-3 years of your loan term. For example, in a 3-2-1 buydown scenario, your interest rate will be reduced by 3% in the first year, 2% in the second year, and 1% in the third year. After that, your loan returns to the original fixed rate for the remainder of the term. There are also 2 year and 1-year buydown scenarios available. The length of the buydown is based on what is available for the specific home you are interested in.
Let’s look at an example:
- Year 1: If your fixed interest rate is 6%, it would drop to 3% for the first year, saving you hundreds on your monthly payment.
- Year 2: The rate would increase to 4%, still lower than your original fixed rate.
- Year 3: The rate would rise to 5%, offering continued savings.
- Year 4 and beyond: The rate stabilizes at the original 6%, but by this time, you’ve likely adjusted financially, and the savings from the early years will have helped ease the transition.
Greenwood Homes Covers the Cost
Normally, the cost of a rate buydown would be an additional expense for the homebuyer, but Greenwood Homes covers this cost entirely. This means you get all the benefits of reduced payments without having to pay for the buydown yourself. It’s one of the many ways we strive to make homeownership more accessible and affordable for our clients.
Why a Rate Buydown Can Benefit You
- Lower Initial Payments: A rate buydown helps you manage your monthly mortgage payments more easily in the first few years, giving you financial flexibility as you get settled in your new home.
- Plan for Future Growth: As your career and income progress, the slight increase in mortgage payments after the buydown period becomes more manageable.
- No Added Cost: With Greenwood Homes paying for the buydown, you can enjoy reduced payments without the upfront fees typically associated with this kind of financing option.
- Peace of Mind: The initial years of homeownership come with many expenses. With lower mortgage payments, you can allocate your resources toward other essential needs like furnishing your home or setting up emergency savings.
- Buy Now Instead of Waiting for Rates to Drop: Get into your dream home now and take advantage of lower pricing and buydown rates instead of waiting to see if rates ever drop below 6% again. If rates do go down more in the future, you can refinance into a better rate for the remainder of your loan.
Get Started Today
Building a new home with Greenwood Homes and financing through our lender partner, Gray Fox Mortgage, offers you the opportunity to save money and enjoy lower payments during those crucial early years of homeownership. Don’t miss out on this incredible opportunity to ease your financial transition and make your dream home even more affordable.
If you’re interested in learning more about our Rate Buydown Program or want to explore your homebuilding options, contact us today. Together, Greenwood Homes and Gray Fox Mortgage are committed to helping you build your future while saving you money.
