United Wholesale Mortgage (UWM) is temporarily reducing the cost of its lender-paid 1-0 Temporary Rate Buydown, giving mortgage brokers another way to help homebuyers manage monthly payments while strengthening relationships with their real estate agent partners.
Under the limited-time promotion, brokers can offer eligible borrowers a monthly payment based on an interest rate that is 1 percentage point lower during the first year of the loan while paying just 25 basis points for the buydown. UWM said the promotion is available on new purchase loan locks from July 1 through Aug. 31.
The reduced pricing is designed to help brokers attract buyers who may be hesitant to enter the market due to affordability challenges, while providing additional value to referral partners navigating a purchase market where financing solutions can make the difference in winning a contract.
Temporary rate buydowns have become an increasingly common affordability strategy as mortgage rates have remained elevated. By reducing payments during the first year of the loan, the programs can help borrowers ease into homeownership while lowering the upfront cost for brokers offering the financing option.
The promotion applies to eligible agency purchase loans, including conventional and government fixed-rate mortgages as well as eligible conventional adjustable-rate mortgages. Government ARMs are not eligible.
To offset the cost of the buydown, UWM will apply:
- A 0.625% loan-level price adjustment (LLPA) credit on government loans and conventional loans with terms of 16 to 30 years.
- A 0.50% LLPA credit on conventional loans with terms of eight to 15 years.
The program is available on purchase loans with terms ranging from eight to 30 years and is not available for refinance transactions or loans originated through UWM's Control Your Price program.
Rather than introducing a new product, the promotion reflects the increasingly competitive wholesale market, where lenders continue using pricing incentives and affordability programs to help mortgage brokers win purchase business. With refinance volume still constrained by higher interest rates, wholesale lenders have increasingly focused on initiatives that help brokers create value for both borrowers and referral partners.
UWM has frequently introduced limited-time pricing initiatives and broker-focused promotions as part of its strategy to drive purchase production through the wholesale channel. The latest offering builds on that approach by lowering the cost of an affordability tool many loan officers already use instead of rolling out a new loan product.
What It Means
For loan officers competing in a purchase-driven market, the promotion provides another conversation starter with both buyers and real estate agents. Instead of relying solely on seller concessions or permanent rate reductions, brokers can offer qualified borrowers a lower first-year monthly payment at a substantially reduced cost.
The program also gives originators another way to differentiate themselves with referral partners. In a market where affordability continues to sideline some buyers, financing strategies that improve monthly payments can help agents keep more transactions together while giving brokers another value-added solution to bring to the table.
