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Combat High Interest Rates with a 3-2-1 Buydown Mortgage

Current mortgage interest rates may deter buying a new home in today’s market. But there are ways to combat these higher interest rates. One popular option is a 3-2-1 buydown mortgage. This loan option lowers your mortgage payment for the first three years of the loan.

Year 1: Loan interest is reduced by 3%

Year 2: Loan interest is reduced by 2%

Year 3: Loan interest is reduced by 1%

Year 4 - length of loan: Owner pays full interest

After the 3-year buydown period ends, the lender will charge the full interest rate for the remainder of the mortgage. By that time, mortgage rates may be lower. Ian Jouett (NMLS #320263), President of Louvier Mortgage Group, LLC (NMLS #1013945), suggests, “Currently, home interest rates are historically high. The 3-2-1 buydown mortgage is designed to allow you some relief during this time and then be able to refinance when lower interest rates occur.”

The 3-2-1 buydown mortgage option can also be used as a seller concession. By negotiating it into the contract, the seller can agree to pay for the added cost of this loan option. It can be a win-win for both the buyer and the seller.

For further information on home loans and mortgages, please contact:

Ian Jouett (NMLS #320263)

Louviers Mortgage Group, LLC

(NMLS #1013945)

Phone: (720) 851-1007


If you have any questions about selling or buying a home, don’t hesitate to contact Chadwick V.R. Williams at Denver Real Estate Professionals. We are happy to be a free resource for all your Colorado real estate needs.

Chadwick V. R. Williams, SRES, CRS, GRI, SRS, Luxury Certified

Broker | REALTOR® | Property Manager



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