United Wholesale Mortgage (UWM), the leading wholesale and purchase lender in the U.S., today announced the launch of temporary rate buydowns.
Effective today, the Pontiac, Mich.-based company said in a news release, “the new offering will allow independent mortgage brokers to give their clients extra flexibility with a lower interest rate and monthly payment at the beginning of their loan.”
Specifically, temporary rate buydowns will lower borrowers’ interest rates by up to 2% for the first two years of a mortgage, UWM said.
“This is an ideal option for borrowers who expect an increase in their income in the next few years or who have seller concessions to use and want to take advantage of a low rate up front,” UWM said.
UWM said its temporary rate buydowns are available with 2-1 and 1-0 buydown options for conventional primary and second home purchases, as well as for FHA and VA primary home purchases.
The announcement of the temporary rate buydowns follows UWM’s announcement in June that it would drop rates across the board by 50 to 100 basis points with its “Game On” pricing. The “Game On” pricing significantly lowered pricing across all loan types, from conventional to government to elite products.
“This strategic pricing move is two-fold; it takes the guesswork out of where a broker should place a loan and accelerates retail loan officers joining the wholesale channel as it further extends independent mortgage brokers advantage over retail,” Mat Ishbia, UWM president & CEO, said at the time. “If a borrower has a 620+ FICO, that loan should come to UWM. Instead of having to choose between the best technology, best client experience, best wholesale partner or best price, we are offering it all.”