Picking the parts of the package

More Articles:

*What’s 100% financing?
*Is a Closed-End Second Mortgage for me?
*What’s a Reverse Mortgage?
*What’s the difference between a temporary buydown and a permanent buydown?
*Does the government sell FHA mortgages?
*How do I make Interest Only work for me?

IWhat’s the difference between a temporary buydown and a permanent buydown?

A temporary buydown reduces your interest rate in the early years of a mortgage loan -- usually one to two years -- in exchange for an up-front cash payment to the lender provided by the homebuyer, the seller, or both. Builders and sellers may offer temporary buydowns to facilitate the sale of homes. A permanent buydown is the payment of points in exchange for a lower interest rate for the life of the loan. See Mortgage.com’s articles on discount points for more information.