A&D Mortgage Launches Temporary Rate Buydowns

A&D Mortgage recently launched its new temporary rate buydown programs, with the new products designed to provide borrowers with more flexibility with their home financing options.

A&D said the temporary rate buydown plans are a good fit for borrowers who have the capacity for higher earnings within a few years of obtaining a mortgage, while also allowing borrowers to benefit from temporary subsidies. 

In a news release, A&D said it now offers:

• 3-2-1 buydown: a buydown of 3% in the first year, 2% in the second year, 1% in the third year, then back to the original locked rate in the fourth year for the duration of the term.
• 2-1 buydown: A buydown of 2% in the first year and 1% in the second year, then back to the original locked rate in the third year for the duration of the term.

A&D said offering the products allows brokers to help borrowers get access to lower initial payments. The buydowns are available for owner-occupied and second-home conventional and Non-QM loans, with third-party or seller-paid options as well.

“We’re excited to offer these new rate buydown products to our customers,” said Max Slyusarchuk, CEO and founder of A&D Mortgage. “By providing a lower interest rate for the first few years of the loan, we can help them save money and build equity more quickly. We’re committed to helping our customers succeed, and this is just one more way we can do that.”

United Wholesale Mortgage kicked off the temporary buydown trend last August and others have followed suit, including Rocket Mortgage, Guaranteed Rate, Newrez, and Plaza Home Mortgage.