SmartSelf and SmartEdge Temporary Interest Rate Buydown
Newrez LLC "Newrez" Approved Correspondent Clients; as part of our continuing efforts to provided competitive, Non-QM financing options to our Clients, Newrez is pleased to announce that temporary interest rate buydowns are now available in the SmartSelf and SmartEdge programs. These changes are effective immediately.
Highlights
Temporary Interest Rate Buydowns are now available for SmartSelf and SmartEdge programs with 4 options to choose from.
- 1-0: payment will be calculated at 1.00% below the Note rate for payments 1-12.
- 1-1: payment will be calculated at 1.00% below the Note rate for payments 1 -24.
- 2-1: payment will be calculated at 2.00% below the Note rate for payments 1-12 and 1.00% below the Note rate for payments 13-24.
- 3-2-1: payment will be calculated at 3.00% below the Note rate for payments 1- 12, 2.00% below the Note rate for payments 13-24, and 1.00% below the Note rate for payments 25-36.
All loans must qualify using the Note rate.
Advantages
- Allows the borrower to have a lower monthly payment at the beginning of the loan.
- Temporary interest rate buydown may be funded by the seller, borrower, or another interested party to the transaction and must comply with interested party contribution limitations.
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