United Wholesale Mortgage (UWM), the No. 1 overall lender in the U.S., said Wednesday it is again expanding its temporary rate buydown options.
Effective immediately, UWM Prime Jumbo borrowers can lower their interest rates at the start of their loan with a 2-1 or 1-0 temporary rate buydown, available on 30-year fixed primary and second home purchases, it said.
Similar to UWM’s offering of temporary rate buydowns on conventional, FHA, and VA loans launched in August and expanded in November, the latest expansion allows jumbo borrowers to save on their monthly payments in the first few years, allowing them to use those funds for additional expenses, such as furniture or upgrades, UWM said.
A 2-1 buydown typically reduces the mortgage rate by 2 percentage points for the first year of the loan and by 1 percentage point for the second year. The 1-0 buydown reduces the rate by 1 percentage point for the first year of the loan.
In August, UWM CEO Mat Ishbia said it was “Game On” when the lender initially offered temporary rate buydowns with 2-1 and 1-0 buydown options for conventional primary and second home purchases, as well as FHA and VA primary home purchases.
UWM subsequently announced it would expand these offerings in November by offering 3-2-1 and 1-1- buydown options, in addition to lender-paid buydowns.
UWM, based in Pontiac, Mich., says it supports independent mortgage brokers with industry-leading training, technology, and service.
After UWM kicked off the temporary buydown trend, others have followed suit, including Rocket Mortgage, Guaranteed Rate, Newrez and Plaza Home Mortgage.