01/19/2023
If you are looking to get a lower interest rate, the 3-2-1 temporary buy-down strategy could be your best option.
With this strategy, you will not pay the mortgage interest rate you locked until the 4th year of your mortgage payments. The goal is to keep your interest rate lower than current market rates, for a temporary period(3 years), until you have an opportunity to refinance into a permanently lower rate.
Here is how it is broken down per year:
1. For the first year of your mortgage payments, you will make payments as if your mortgage has a 3% lower interest rate.
2. For the second year of your mortgage payments, you will make payments as if your mortgage has a 2% lower interest rate.
3. For the third year of your mortgage payments, you will make payments as if your mortgage has a 1% lower interest rate.
4. For the fourth year and on, your mortgage payments will be based on your full original interest rate.
Remember, you are looking for an opportunity to refinance into a permanently lower interest rate before you hit year 4.
With rates now hovering in the 5%’s, this strategy could land you an interest rate in the 2%’s for the first year of mortgage payments.
If you want to pursue this strategy, let’s schedule some time talk about how to make that happen!
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Chris Saraus| DC, MD, VA, & FL
Email: [email protected]
Cell: 703.901.9211 (call or text)
