Getting the right loan for your Salt lake City home purchase is the first step to getting you into the home of your dreams.  The question is "What is the best loan for me considering all the options?"  Here is one option:

In simple terms a buydown mortgage is a lump sum payment which is made with the initial purchase of a home. It essentially involves making a prepayment on interest. This reduces the interest rate that the lender has to pay on the mortgage loan. Buydown mortgages are available in two different types, and you may want to consider either of these when you are purchasing a new home in Greater Salt Lake City/Park City.

Temporary buydown mortgage

A temporary buydown mortgage will reduce the interest rate for the first few years of the mortgage. A 3-2-1 option is a typical buydown, which means that the person borrowing the money will pay 3% below the full interest rate during the first year, 2% in the second and one percent in the third. In the fourth year the borrower must pay the full interest rate. Many homebuyers in the Greater Salt Lake City/Park City area are choosing this type of mortgage as a way to lower their payments.

Permanent buydown mortgage

The permanent buydown mortgage will reduce interest rates for the entire term of the mortgage. This type of buydown mortgage will lower the interest rate for the rest of the term of the loan. This type of mortgage involves a larger lump sum payment, which can be financed if need be. There are many banks in Greater Salt Lake City/Park City that recommend this type of loan as a solution to high interest rates, especially when the rates appear to be rising.

Buydown mortgages can help reduce the costs of the monthly payments and is good for people that do not qualify for other low payment loans. They are also good for individuals in Greater Salt Lake City/Park City that need to make the house more affordable on a short-term basis because they expect their future income to be higher.

There is a lot of free information available to you about buying, selling or investing in Greater Salt Lake City/Park City real estate. For complete information about the Greater Salt Lake City/Park City real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Greater Salt Lake City/Park City real estate. So please feel free to contact me with any of your real estate or mortgage related questions and I will be more than glad to answer your questions. Call me on my cell at 801-518-4599 or email me at kathyo@kathyohomes.com.

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