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    3 2 1 Mortgage Buydown Agreement Sample

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    sekfinre
    3 2 1 Mortgage Buydown Agreement Sample

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    3 2 1 Mortgage Buydown Agreement Sample

    Uploaded by

    sekfinre
    41 views2 pages
    3 2 1 Mortgage Buydown Agreement Sample

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    3 2 1 Mortgage Buydown Agreement Sample

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    41 views2 pages

    3 2 1 Mortgage Buydown Agreement Sample

    Uploaded by

    sekfinre
    3 2 1 Mortgage Buydown Agreement Sample

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    BUYDOWN AGREEMENT

    Test
    Loan #: 2/1 Buydown test
    BORROWER: James Test
    BUILDER/SELLER: n/a
    PROPERTY ADDRESS: 123 Test Street, Idaho Falls, ID 83402
    LOAN AMOUNT: $160,000.00 NOTE INTEREST RATE: 3.500%

    The purpose of this agreement is to explain certain aspects of the Buydown Mortgage Loan for which you, as Borrower, have applied.

    This agreement between Origination Company Origination Company and/or its assigns and the below acknowledged
    parties, set forth the terms of the Buydown Plan in connection with the mortgage loan secured by the property listed above.

    BUYDOWN SCHEDULE

    NUMBER OF BORROWERS NEW BORROWERS PORTION OF BUYDOWN TOTAL PRINCIPAL AND


    PAYMENTS INTEREST RATE PRINCIPAL AND INTEREST AMOUNT INTEREST PAYMENT
    12 1.500% $552.19 $166.28 $718.47
    12 2.500% $632.19 $86.28 $718.47

    TOTAL BUYDOWN FUND = $3,030.72

    In order to comply with FNMA/FHLMC guidelines and protect the availability of the buydown funds, these funds shall be held in an
    escrow account with a financial institution which is not the original or servicing mortgagee and is supervised by a Federal or State
    agency. The escrow shall pay over the buydown funds as required by agreement to Origination Company Origination
    Company and/or its assigns. However, if, for some unforeseen reason, the escrow payments are not forthcoming, it is the Borrower's
    responsibility to make the total payment set forth in the mortgage note.

    The buydown funds may not be used to pay past due payments of the Borrower. The buydown funds will be automatically applied
    during each payment period to reduce the periodic payment of principal and interest to the extent provided for in this agreement.

    If the property is sold by Borrower and the mortgage is prepaid in full during the buydown period, the nondisbursed and available
    buydown funds shall be credited to the unpaid principal balance of the mortgage.

    If the ownership of the property securing this buydown mortgage is sold or transferred during the buydown period and the terms of the
    buydown mortgage are assumed by the purchaser, any remaining buydown funds are to be used to reduce the mortgage payments of
    the purchaser in accordance with the buydown schedule.

    In the event of a foreclosure of the mortgage, the balance of the buydown funds remaining on deposit with escrow shall be paid to the
    mortgagee acquiring title to the property and the claim for mortgage insurance benefits must be reduced by the amount in the buydown
    escrow account.

    Except as otherwise provided in this agreement, the buydown funds are not refundable. The Borrower's only interest in the buydown
    funds is to have them paid over and applied to payments due under the Note along with payments made by Borrower. The
    Builder/Seller specifically agrees that no repayment of the buydown funds is required.

    The sole responsibility of Origination Company Origination Company and/or its assigns and escrow under this
    agreement, shall be limited to the holding and application of the buydown funds as set forth in this agreement. Such responsibility will
    terminate upon the depletion of such funds or the application of the funds to the unpaid principal balance of the mortgage as provided
    for in this agreement.

    25.55 Page 1 of 2
    Conv test

    The parties hereby acknowledge that they have read, undersigned and agree to the above:

    - SELLER - n/a - DATE -

    - LENDER - Origination Company Origination Company - DATE -

    - BORROWER - James Test - DATE -

    25.55 Page 2 of 2

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