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Exploring Our Financial Incentives: Unlocking the Path to Homeownership with 3-2-1 Buydowns

March 18, 2024

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In the ever-evolving landscape of new homes, navigating through mortgage incentives can be the key to unlocking the door to your dream home. Through our extensive experience in building top-quality new homes in Sacramento, Phoenix and Yuma—our team at Elliott Homes understands the significance of these incentives in helping you secure the best possible deal for your new home purchase. Because of this, we’re proud to offer incentives on select move-in ready homes—including 3-2-1 rate buydowns. Read below as we explore the array of benefits that come with 3-2-1 buydowns and discover how you can take advantage of this incredible opportunity with Elliott Homes.

Understanding rate buydowns—empowering homebuyers

At Elliott Homes, we're committed to empowering homebuyers with the knowledge they need to make informed decisions—and this includes understanding how a rate buydown works. Simply put, it's a financing technique where the interest rate on your mortgage loan is reduced for a specified period, usually at the beginning of the loan term. This reduction is made possible by paying upfront fees, commonly referred to as points, which effectively lower the interest rate. Rate buydowns come in various forms, each tailored to meet the unique needs of homebuyers. A 3-2-1 buydown is a category of temporary buydowns, where the interest rate is reduced for a set period before reverting to a fixed rate. This structure provides immediate relief in the early years of homeownership—allocating more budget for other essential expenses and helping ease the financial transition into homeownership.

About the 3-2-1 buydown—your gateway to affordability

A 3-2-1 buydown is a popular type of temporary mortgage rate reduction that offers a structured approach to affordability, which we’re beyond proud to offer on select move-in ready homes. Here's how it works:

  • Lower initial payments: In the first three years of your mortgage, the interest rate is reduced by 3% below the note rate in the first year, 2% in the second year and 1% in the third year. This results in lower initial payments—easing the transition into homeownership. Because of this, you can allocate your resources more effectively, whether it's for furnishing your new home, saving for future expenses or simply enjoying a greater sense of financial security.
  • Ease of budgeting: The gradual increase in payments over the years allows you to plan and adjust your finances accordingly, ensuring peace of mind as you settle into your new home. This structured approach to payments helps you anticipate and accommodate changes in your financial situation, whether it's due to fluctuations in income or unexpected expenses. By offering a predictable payment schedule, a 3-2-1 buydown empowers you to manage your budget with confidence, fostering a sense of stability and control throughout your homeownership journey.
  • Increased affordability: By making higher-priced homes more attainable in the initial years, the 3-2-1 buydown expands your options, opening doors to a wider range of homes that fit your budget. This increased affordability not only allows you to explore homes that may have previously been out of reach—but also enables you to invest in a property that aligns more closely with your long-term goals and aspirations. With the flexibility afforded by a 3-2-1 buydown, you can embark on your homeownership journey with confidence, knowing that you have the opportunity to secure a home that meets both your financial needs and your lifestyle preferences.

3-2-1 buydowns are a powerful tool in today's mortgage market, offering immediate relief and long-term financial benefits for homebuyers—and with a trusted builder like Elliott Homes by your side, you can confidently navigate the ins and outs of the homebuying process and find your dream home in no time.

Experience financial freedom with Elliott Homes

At Elliott Homes, we're here to guide you every step of the way on your journey to homeownership. With over a century of experience in building new homes throughout Sacramento, Phoenix and Yuma, we have the expertise and dedication to help you find the perfect home and financing solution to suit your needs, from our 3-2-1 buydowns to our various financing incentives on select move-in ready homes. Give us a call at (866) 984-1300 or fill out our online form to learn more about our financing incentives and start your journey toward owning the home of your dreams.


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