Buydown rate change

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  • #79120
    BostontoAtl
    Participant

    I was advised today that buying down 1% of the interest rate is no longer .025, it has been reduced to .0125 When did this take effect?

    • This topic was modified 5 months, 3 weeks ago by BostontoAtl.
    #79701
    TTrumble
    Member

    Hello BostontoAtl,

    The buy down amount actually changed more than a year ago when Bank of America renewed their agreement with us and committed an additional $5 billion to the NACA program. For a 30-year loan, each point buys down the rate 1/6 of one percent (0.167%) and on a 15-year loan, it’s 1/4 of one percent (0.25%).

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