Posted on: 24th Sep, 2007 03:20 pm
does it simillar to buy up mortgage and buy down mortgage? i want the details with the difference of terminology.
Hi Ramesh,
Welcome to the forum.
Buy-up mortgage means to pay a higher interest rate on the loan which in turn reduces the upfront costs of the mortgage.
Buy-down mortgage is of two types – A permanent buy-down and a temporary buy-down. A permanent buy-down means to pay points in exchange for a lower interest rate on the loan, while a temporary buy-down means a reduction in the loan payments in the initial loan term in exchange of a cash payment made by the borrower.
Welcome to the forum.
Buy-up mortgage means to pay a higher interest rate on the loan which in turn reduces the upfront costs of the mortgage.
Buy-down mortgage is of two types – A permanent buy-down and a temporary buy-down. A permanent buy-down means to pay points in exchange for a lower interest rate on the loan, while a temporary buy-down means a reduction in the loan payments in the initial loan term in exchange of a cash payment made by the borrower.
Welcome Ramesh,
You will get to know more about Buy-down mortgages at http://www.mortgagefit.com/buy-mortgage.html .
You will get to know more about Buy-down mortgages at http://www.mortgagefit.com/buy-mortgage.html .