Temporay 2-1 buy down mortgage question for refinancing

[psycontr]

Currently locked interest rate with 2-1 buydown. Used all seller closing credits to buydown instead of buying points. I checked with lender will the buydown money goes to new lender or reduce principal balance if I refinance. They said after making 6 payments you can refinance and buydown left over money will reduce principal balance if I refinance.

Is there such a 6 month rule for refinance ? I did not see any such rule in loan disclosure form.

[Android_Halwa]

7/1 ARM option leda ?

[pandugadu999]

rate buydown chesa antav..malla buydown money endi?

[Sizzler]

  On 4/3/2025 at 4:36 PM, psycontr said:

Currently locked interest rate with 2-1 buydown. Used all seller closing credits to buydown instead of buying points. I checked with lender will the buydown money goes to new lender or reduce principal balance if I refinance. They said after making 6 payments you can refinance and buydown left over money will reduce principal balance if I refinance.

Is there such a 6 month rule for refinance ? I did not see any such rule in loan disclosure form.

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You are allowed to refinance whenever you like… don’t know about the buy down , principal scenario. 

[Sizzler]

  On 4/3/2025 at 4:59 PM, Android_Halwa said:

7/1 ARM option leda ?

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ARMs are expensive than regular options now. 

[psycontr]

  On 4/3/2025 at 5:24 PM, pandugadu999 said:

rate buydown chesa antav..malla buydown money endi?

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Not rate buy down. With this option seller given closing credit they will put in escrow approx $20k in my case. This is 2-1 buydown mean if your base rate is 7 and base monthly premium is $5k for first year you pay $4k and they will add $1k from escrow, second year you pay $4.5k and they will add $500 until your buydown funds in escrow exhaust.

now question is if I refinance before exhausting $20k buydown funds in escrow will remaining balance can be used to reduce principle amount ?

[psycontr]

  On 4/3/2025 at 4:59 PM, Android_Halwa said:

7/1 ARM option leda ?

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Yes ARMs are expensive now

[psycontr]

  On 4/3/2025 at 5:44 PM, Sizzler said:

You are allowed to refinance whenever you like… don’t know about the buy down , principal scenario. 

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Buydown money they are putting in escrow some saying if you refiance remaining fund in escrow will be used to pay principal balance.

[Anta Assamey]

Congratulations on your New Home bro...

[Android_Halwa]

  On 4/3/2025 at 6:55 PM, psycontr said:

Yes ARMs are expensive now

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Couple of months back, I saw ARM’ rates were much lower than 2:1…ask builder to pay for the ARM and use closing credit to pay for closing…

Looking at economic prospects, Interest rates may just go up again

[psycontr]

  On 4/3/2025 at 7:00 PM, Android_Halwa said:

Couple of months back, I saw ARM’ rates were much lower than 2:1…ask builder to pay for the ARM and use closing credit to pay for closing…

Looking at economic prospects, Interest rates may just go up again

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Now ARM and 30yr almost same rate. Builder closing credit after closing expenses oka $20k untai so avi 2:1 lo petti refinance chesthe principal balance will lower by $20k antunnaru and bayata lower rate undhi compared to builder lender.

[Sizzler]

  On 4/3/2025 at 6:57 PM, psycontr said:

Buydown money they are putting in escrow some saying if you refiance remaining fund in escrow will be used to pay principal balance.

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That will be good if it is true. 

Congratulations on your new home! 

[Android_Halwa]

  On 4/3/2025 at 7:13 PM, psycontr said:

Now ARM and 30yr almost same rate. Builder closing credit after closing expenses oka $20k untai so avi 2:1 lo petti refinance chesthe principal balance will lower by $20k antunnaru and bayata lower rate undhi compared to builder lender.

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Anyway, Congrats. Closing epudu ? 
 

Buydown money vunte, go for builder lender and oka few months la escrow credit tho buy down cheyadam better..

Rates are lower today…check it out. You may get 30 year conventional for 6.8% 

[psycontr]

  On 4/3/2025 at 7:17 PM, Android_Halwa said:

Anyway, Congrats. Closing epudu ? 

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Thank you. This month end.

[psycontr]

  On 4/3/2025 at 7:16 PM, Sizzler said:

That will be good if it is true. 

Congratulations on your new home! 

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Thank you