What is a Mortgage Buydown?

Published On: January 19th, 2017|Categories: Blog, Financial Preparation, Financing, Mortgages|

If you’re thinking about buying a home in Aspen, you need to plan for the future, too—and that means getting to know different types of financing options and determining what could work in your favor.
If you haven’t heard of a mortgage buydown, now is the time to become familiar with it; it’s a technique used by many savvy investors and homeowners.

What is a Mortgage Buydown?

A mortgage buydown is a way to pay off your mortgage loan and watch the total balance become smaller with each payment. A smaller mortgage balance indicates that your equity is growing, even if your home is appreciating in value very slowly (or barely at all).

Features of a Mortgage Buydown

A mortgage buydown is simple and straightforward. It works because the payments are reduced, and they’re calculated with a lower interest rate over a specific period of time.
It’s a bit like a subsidy in that you’re putting away a certain amount of money and using part of it each month to help pay your mortgage payment.

Could a Mortgage Buydown Work for You?

Talk to your lender to find out whether a mortgage buydown could be fiscally favorable for you.

Are You Moving to Aspen?

If you’re thinking about moving to Aspen, we’d love to help you find your next home.
Call us at 970-429-8275 or contact us online to tell us what you’re looking for so we can begin searching right away.

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