The 2-1 Buy Down & Other Loan Fads (Episode 81) S6 E6

2022-08-02

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You've heard of the 2-1 buy down, but what is it really? What about other loan options like discount points or a single MI pay down? 0:00 - Introduction 1:49 - 2-1 Buy Down. This is what it is and the calculations on how it works. The buy down is NOT paid by the buyer. 2% less rate first year. 1% less rate the second year. 3rd year is the normal rate. Buyer has to qualify for the loan at the regular rate. Be ready for not only the rate increase, but ALSO the escrow increases (taxes and insurance). 8:03 - D...

You've heard of the 2-1 buy down, but what is it really? What about other loan options like discount points or a single MI pay down?

0:00 - Introduction
1:49 - 2-1 Buy Down. This is what it is and the calculations on how it works. The buy down is NOT paid by the buyer. 2% less rate first year. 1% less rate the second year. 3rd year is the normal rate. Buyer has to qualify for the loan at the regular rate. Be ready for not only the rate increase, but ALSO the escrow increases (taxes and insurance).
8:03 - Discount Points. 1 discount point costs 1% of the loan, reduces the rate by 1/4 point, and is a permanent reduction for the life of the loan.
10:54 - Single-Premium Mortgage Insurance. Pay it all at once, up front, you'll save a couple hundred dollars per month, and several years of mortgage insurance.
14:16 - What'd we learn today?
16:17 - Out Takes.

* No loan officer egos were harmed in the making of this video.
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Aric Wiszt: 801-228-7687‬

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Jason Christiansen: 801-669-7271
NMLS: 240472

A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.

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