#interest-rate

#interest-rate

Permanent vs. temporary buydowns A mortgage buydown can take place over a set period of time or the duration of the loan. Permanent mortgage buydown With this option, you'll buy a lower rate for the entirety of the loan term at closing from your lender through discount points. Unlike a temporary mortgage buydown, the rate will never increase. Temporary mortgage buydown With this arrangement, your mortgage interest rates will be reduced for a period of time before returning to the standard amount.

Fannie Mae expects servicers to notify borrowers about their temporary interest rate buydown ending and subsequent interest rate increases 90 days prior to the change.