Taylor Morrison Home Corp. has debuted a 2-1 buydown from a fixed rate mortgage program designed to help borrowers cover some of the interest costs that occur during the initial years of homeownership.
According to the Scottsdale, Ariz.-based homebuilding company, the 2-1 rate buydown for conventional and FHA financing enables qualified owner-occupied borrowers with a minimum 680 credit score to finance their mortgage payment at a rate that is 2 percent below the fixed rate mortgage in the first year and 1 percent lower in the second year before taking on a fixed rate mortgage over the remaining life of the loan. The 2-1 rate buydown began on Jan. 4 on move-in ready homes that close on or before April 30.
"The buydown program is an excellent choice for many families and hasn't been widely used for some time," said Tawn Kelley, President of Taylor Morrison Home Funding. "For a builder to offer this kind of financial incentive to ease the costs of mortgage interest, it can make a significant difference to a family's first years settling into their home and is quite unique.
"It is a perfect solution for people who may be expecting a promotion or working on paying off a car loan or credit card balances or, just wanting the extra dollars to bolster their savings. To put it simply, it offers our customers a priceless gift—savings with the peace of mind knowing they have a mortgage that is secure no matter how long they choose."