Novus Home Mortgage

What if this home came with a lower payment to start?

When the seller, Novus Home Mortgage, or both put money toward a temporary buydown, your monthly payment drops for the first 1 year of the loan, then returns to the full payment. The list price stays the same. Enter a price to see how it works.

Who pays for the buydown?

Novus Home Mortgage contributes up to the amount shown above. The seller then negotiates their share on top. It can also be funded by a builder, or by the buyer. The seller’s portion is agreed per property and written into the contract — it is not automatic and not a standing offer on every home.

Does this raise the price of the house?

Sometimes a seller lists slightly higher to fund their share, and sometimes they fund it out of the existing price. Either way the buyer sees the price and the credit in the contract. What a buydown avoids is a public price reduction, which is why sellers often prefer it.

Is a temporary buydown the same as buying points?

No. Discount points permanently reduce the note rate for the life of the loan. A temporary buydown leaves the note rate alone and subsidizes the payment for the first year or two from an escrow account. Points cost more; a temporary buydown buys a bigger visible drop for less money, but it does not last.

What rate do I qualify at?

The full note rate, not the reduced year-one rate. That’s the part people get wrong. A temporary buydown lowers what you pay in the early years; it does not increase how much you can borrow. A permanent buydown does lower the qualifying rate.