Conventional Loans and Refinancing | Genesee Regional Bank

Conventional loans and refinancing are among the most popular home mortgage products today. GRB offers a range of traditional mortgage options, as well as more unique products including Temporary Buydowns. In addition, we offer flexible loan and refinancing options with fixed or adjustable rates designed to help borrowers meet their financial goals.

Temporary Buydowns

In a temporary buydown, the effective interest rate that a borrower pays during the early years of the mortgage is reduced as a result of the deposit of a lump sum of money (sometimes called a “subsidy”) into a buydown account. Each month, a portion of the subsidy account is released to reduce the borrower’s payments during the buydown period. The subsidy is provided by the seller and is typically offset by an increase in the purchase price of the home.

Temporary buydowns can be advantageous for buyers in certain circumstances:

Buyers interested in a home with a motivated seller

Buyers anticipating a rapid rise in their household income

There is a possibility that they plan to sell the home shortly after the buydown period ends

To save money on interest payments

Example Temporary Buydown Mortgage Scenario

GRB offers 3-2-1, 2-1, and 1-0 temporary buydowns. Take a closer look at what a temporary buydown could mean:

Loan Amount	$200,000
Loan Amount Interest Rate (annual)	$200,000 7.750%
Loan Amount Annual Percentage Rate (APR)	$200,000 7.943%
Loan Amount Loan period in years	$200,000 30 years
Loan Amount Monthly Payments	$200,000 $1,146.26
Loan Amount Total Payments	$200,000 360

Temporary Buydown 3-2-1*

Interest Rate	Note Payment	Actual Payment	Monthly Subsidy	No. of Payments	Annual Subsidy Payments
Interest Rate 4.750%	Note Payment $1,146.26	Actual Payment $834.60	Monthly Subsidy $311.62	No. of Payments 12	Annual Subsidy Payments $3,739.44
Interest Rate 5.750%	Note Payment $1,146.26	Actual Payment $933.72	Monthly Subsidy $212.54	No. of Payments 12	Annual Subsidy Payments $2,550.48
Interest Rate 6.750%	Note Payment $1,146.26	Actual Payment $1,037.76	Monthly Subsidy $108.50	No. of Payments 12	Annual Subsidy Payments $1302.00
Interest Rate	Note Payment	Actual Payment	Monthly Subsidy	No. of Payments Buydown Cost	Annual Subsidy Payments $7,591.92

Temporary Buydown 2-1*

Interest Rate	Note Payment	Actual Payment	Monthly Subsidy	No. of Payments	Annual Subsidy Payments
Interest Rate 5.750%	Note Payment $1,146.26	Actual Payment $933.72	Monthly Subsidy $212.54	No. of Payments 12	Annual Subsidy Payments $2,550.48
Interest Rate 6.750%	Note Payment $1,146.26	Actual Payment $1,037.76	Monthly Subsidy $108.50	No. of Payments 12	Annual Subsidy Payments $1,302.00
Interest Rate	Note Payment	Actual Payment	Monthly Subsidy	No. of Payments Buydown Cost	Annual Subsidy Payments $3,852.48

Temporary Buydown 1-0*

Interest Rate	Note Payment	Actual Payment	Monthly Subsidy	No. of Payments	Annual Subsidy Payments
Interest Rate 6.750%	Note Payment $1,146.26	Actual Payment $1,037.76	Monthly Subsidy $108.50	No. of Payments 12	Annual Subsidy Payments $1,302.00
Interest Rate	Note Payment	Actual Payment	Monthly Subsidy	No. of Payments Buydown Cost	Annual Subsidy Payments $1,302.00

* The examples above are meant for educational purposes only and does not include taxes, insurance and other fees. The stated rate is an interest rate. While every effort has been made to ensure accuracy, no guarantee is expressed or implied. Any programs shown do not demonstrate all options or pricing structures. Rates, terms, programs, and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to credit requirements and underwriting approval. Interest rates subject to change. Please contact a GRB Mortgage Originator for complete financial information on temporary buydowns and other mortgage products.

Conventional Loans

The standard of mortgage lending, conventional mortgages are best suited for buyers with high credit scores, and typically, higher amounts available for a down payment. Fixed rate mortgages are best if you are planning to stay in your home for the long term.

Various terms are available. For the lowest possible initial rate, or if you are planning to move or refinance in a few years, an adjustable rate mortgage (ARM) is a better option. Use our free online mortgage calculator or contact a GRB mortgage professional to see which options are best for your situation.

For primary homes or investment properties (1-4 units)
Cash out refinance available
Various loan terms available
Low down payment
Seller’s concessions are dependent on down payment

Refinancing

As rates rise and fall, the option to refinance a residential home mortgage can be an important tool for homeowners. Refinancing a higher-rate loan can reduce the monthly payment, free up cash for other purposes, or shorten the term of the loan.

It’s important to keep an eye on interest rates long after you close on your home. Currently, the market is looking quite favorable for refinancing with rates at historic lows.

Use our quick online refinancing calculator or contact our mortgage professionals for a free analysis. It takes just minutes to find out if a refinance could work for you!