Cuts rate by 2% in year one and 1% in year two before loan returns to fixed rate.
Builder
Taylor Morrison Home Corp. (NYSE: TMHC) over the weekend launched a 2-1 buydown from a fixed rate mortgage program during which Taylor Morrison will help pay some of the interest cost during the initial years of homeownership.
The Taylor Morrison 2-1 rate buydown for Conventional and FHA financing for qualified owner-occupied borrowers with a minimum 680 credit score allows consumers to pay their mortgage payment at a rate 2% below the fixed rate mortgage the first year and 1% lower the second year before the mortgage returns to a fixed rate over the remaining life of the loan. This effectively cuts the rate of the mortgage over the first two years of the loan without the risk associated with an adjustable rate loan in which rates can rise in perpetuity.
