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  • CMG Financial Introduces 3-2-1 Buydown Loan to Increase Access to Affordable Mortgage Financing Solutions

CMG Financial Introduces 3-2-1 Buydown Loan to Increase Access to Affordable Mortgage Financing Solutions

  • October 31, 2018

San Ramon, CA – CMG Financial, a privately-held, well-capitalized mortgage banking firm headquartered in San Ramon, CA, announced its new 3-2-1 Buydown Loan that allows consumers to secure a lower interest rate and lower the monthly mortgage payment during their first three years of homeownership. The home buyer earns these lower payments through a “buydown fee” that can be paid by an interested third party like a home builder, seller, or Realtor, or by the home buyer. 

Using the 3-2-1 Buydown Loan, an interested third party has the option to pay for some or all of an upfront “buydown fee.”  The loan is available with a 3-year, 2-year, or 1-year option.  In the 3-2-1 scenario, for the first year, the monthly payment will be based off an interest rate 3 percentage points below the initial rate, the second year, the monthly payment will be based off an interest rate 2 percentage points lower than the initial rate, and for the third year, the monthly payment will be based off an interest rate 1 percentage point lower than the initial rate.  In the fourth year, the monthly payment will be based off of the fixed-rate with which the home was financed for the duration of the mortgage loan. 

With interest rates expected to continue rising, prospective home buyers who are on the fence, may be more inclined to make a purchase now rather than wait another few years.  With the 3-2-1 Buydown Loan, home buyers have the opportunity to lock in an interest rate now and then ease into their mortgage payment during their first few years of homeownership. 

New home builders have also taken interest in the 3-2-1 Buydown Loan.  Instead of offering aesthetic home upgrades subject to home buyer taste and preference, builders have the option to pay the buydown fee for a home buyer.   The 3-2-1 Buydown Loan allows builders to expand their reach and gain a competitive edge over other builders in their market.  In crowded markets, sellers can stand out by offering to pay some or all of the buydown fee as a “seller concession.” 

No stranger to innovative lending solutions, CMG Financial is also the home to proprietary mortgage products the All In One Loan and HomeFundIt.  The All In One Loan combines banking and mortgage financing to allow homeowners to apply payments to principal balance first, lowering the lifetime cost of mortgage interest, and paying off their mortgage faster.  HomeFundIt is the first and only crowdfunding platform designed specifically for the down payment on a home.  In an evolving industry, CMG Financial leads the way in new product development and has continued to serve home buyers for 25 years. 

The 3‐2‐1 Buydown product is available for home purchase only, with fixed‐rate, conventional, conforming loans. Requirements and eligibility varies based on Fannie Mae and Freddie Mac regulations.  To learn more about the 3-2-1 Buydown Loan, please consult a CMG Financial loan officer.



About CMG Financial 

CMG Financial is a well-capitalized, privately held mortgage-banking firm founded in 1993. The company makes its Loans and services available to the market through three distinct origination channels including Retail Lending, Wholesale Lending, and Correspondent Lending.

CMG Financial currently operates in all states, including District of Columbia, and holds federal agency lending approvals with HUD, VA, RHS, GNMA, FNMA and FHLMC. Throughout the mortgage banking and housing markets, CMG Financial is widely known for responsible lending practices, industry and consumer advocacy, Loan innovation, and operational efficiency.

Kevin Long
Area Sales Manager
NMLS # 195255
Branch NMLS # 1108042

Kevin Long

PHONE: (615) 567-8901

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© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).