Non-QM lender A&D Mortgage announced this week that it has rolled out new temporary rate buydown programs aimed at making home financing more flexible for high-net-worth borrowers.
In its Press release, the company said that tentative rate buydowns are well suited to borrowers with higher earnings potential within a few years of obtaining a mortgage. According to them, borrowers can benefit from temporary subsidies of their monthly principal and interest payments by participating in buydown plans. Brokers assist borrowers in getting lower initial payments, and more stable payment increases, by offering these products.
The rate buydown products offered by A&D are available for owner-occupied and second-home conventional loans, third-party or seller-paid loans, and non-QM loans. Included in the programs are:
- 3-2-1 buydown: In the first year, a buydown of 3%, in the second year – 2%, in the third year – 1%, then in the fourth year, back to the original locked rate for the duration of the term.
- 2-1 buydown: In the first year, a buydown of 2%, in the second year – 1%, then in the third year, back to the original locked rate for the duration of the term.
Max Slyusarchuk, A&D Mortgage CEO, expressed their excitement in offering their customers these new rate buydown products. They can help them save money and build equity more quickly by offering a lower interest rate for the first few years. According to him, the new program is just one more way they can help customers succeed.