Rate Buydowns

CMS Expands Affordability-Minded Offerings

Posted on by TMN Editor
Carrington Mortgage Services expanded its offerings to include 40-year loans and temporary buydowns as homebuyers prioritize affordability in today’s tough market. The lender said it aims to offer greater affordability to homebuyers, especially first-timers, buyers who are in the process of improving their credit, and those with non-traditional incomes.  “At Carrington, it’s our company’s mission to enable a lifetime of simple and attainable homeownership,” said Greg Austin, EVP of Mortgage Lending for CMS. “For homebuyers looking for greater affordability, our 40-year loan and temporary buydowns are options that we are proud to offer.” Broad offerings are especially important in the age of gig work and side hustles. One study found that gig workers make up a full quarter of the…

Permanent Rate Buydowns Continue To Reign For Affordability-Minded Buyers

Posted on by TMN Editor
Rate buydowns continue to soar as borrowers look for ways to combat the affordability crisis, according to new data from Black Knight. In the third week of January, 57% of buyers paid at least a half-point on a permanent buydown, while 44% paid a full point, and almost 25% bought down two or more points. In total, borrowers paid an average of 1.25 points down, at an average of $4,300 per borrower. Pre-pandemic buydowns from 2018 to 2020 averaged only 0.5 points, around $1,500. This is not the high point for buydowns, which peaked in September and October 2022 with 71% of buyers buying down their rates. But it points to a continuing trend of buyers trying to decrease their…