3-2-1 Buydown Program

North Everett is an accessible yet oft-overlooked neighborhood. And with a major residential project in the works, it may be on the verge of a surge in value.

In nearly two decades of helping folks buy homes with mortgages in Everett, the David Haley team has seen a lot of growth and development. After all, there’s perennial employment with Boeing and the navy, plus a growing base of IT/tech firms. More recently, it’s also been a refuge from King County’s exorbitant costs.

This project in particular signals a shift to the walkable, mixed-use options that younger buyers want but Everett hasn’t traditionally emphasized. This sort of development suggests that North Everett could be a promising but fleeting buying opportunity. Even if a more urban feel isn’t your preference, remember that a rising tide lifts all ships.

But for many would-be buyers, the question remains: how can you get your piece of North Everett’s high potential when rates remain so high?

Interest rate relief with buydown loans

What if you could get a break on the interest rate for up to three years while also making your offer more appealing to the seller?

If your loan meets Qualified Mortgage rules, then a buydown program may open the door to the right home, in the right place, at the right time.

Common buydown program structure

Usually, the seller makes an initial payment called a subsidy. It sits in a dedicated buydown account under the buyer’s name. A portion is released each month for one to three years, effectively subsidizing interest payments during that period.

The buyer pays the lowest effective rate at first, then an additional percentage point per year until reaching the full rate. Depending on the exact buydown program, here’s how reductions are typically allocated over time:

If interest rates drop at any point during or after the buydown program, a savvy borrower can refinance to lock in permanent savings. At that point, any remaining balance in the subsidy account can be used to cover fees.

In many cases, the interest rate savings are greater than you could achieve through a reasonable discount on the sale price. If your agent presents a buydown effectively, it may keep your offer competitive and save more money long-term compared to requesting a discount.

Let’s find the right lending program for you

Lending isn’t a cookie-cutter business, or at least it shouldn’t be. And these days, with more individualized loan products than ever, a consultative and education-first approach is invaluable.

As their online reviews show, David and team simply enjoy helping potential Everett buyers understand their options—whether it results in business now, later, or never. They take joy in making new neighbors, earning long-term trust, and helping build strong financial futures.

Their goal is to help new neighbors find what works for them, period.

In that spirit, the David Haley team will help you understand your buydown eligibility, decide what best supports your financial goals, and pick the ideal mortgage product to help you establish roots in Everett.

Curious to learn more? Reach out today to discuss your options with a friendly team who knows the Everett market like the backs of their hands!

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Daniel’s Homebuying Adventure in Everett

Daniel is excited to buy his first home and has his heart set on Everett, a city known for its rapid development and diverse job opportunities. With a background in aerospace, he’s thrilled about the proximity to the Boeing company and many other aerospace companies all gathered around in the area. Daniel is also excited about the city’s plan to develop up to 15-story tall buildings in North Everett, which promises a modern lifestyle for young couples and professionals.

However, Daniel is new to the world of home buying and feels overwhelmed by the decision between purchasing and leasing. He knows that in Everett, both options have their pros and cons, and the right choice depends on his personal circumstances. Fortunately, he’s been recommended to talk to David Haley, a local expert who has been helping people buy homes in the area for almost two decades.

Illustration of man standing in front of a house for sale in Everett, Washington

Meeting David Haley

David listens to Daniel’s concerns about the current controversial interest rates and his desire for a manageable mortgage. He explains that not all mortgages are the same and introduces him to a 3/2/1 buydown mortgage, a special financing option that could be perfect for him.

Understanding the 3/2/1 Buydown Mortgage

David explains that a 3/2/1 buydown mortgage allows Daniel to pay lower interest rates in the first three years of his loan, gradually increasing to the standard rate in the fourth year and staying constant after that. Here’s how it breaks down:

  1. First Year: Daniel’s interest rate is 3% lower than the standard rate.
  2. Second Year: His interest rate is 2% lower than the standard rate.
  3. Third Year: His interest rate is 1% lower than the standard rate.
  4. Fourth Year and Beyond: He pays the standard rate.

How Does This Benefit Daniel?

David explains that this mortgage type can be especially beneficial in Everett’s evolving market. With the area’s development and job opportunities, Daniel can expect his income to increase over time, making it easier to handle higher payments in the future. Plus, the seller of his new home agrees to pay for the 3/2/1 buydown program, placing the funds in a special savings account to cover the reduced interest portions.

What if Interest Rates Go Down?

David also reassures Daniel that if interest rates drop in the next couple of years, he can refinance his mortgage. The money in the savings account set up by the seller can help cover the fees associated with refinancing, making the transition smooth and cost-effective.

Why Work with David Haley?

David’s expertise doesn’t end with finding the right mortgage. He’s known for thinking in his clients’ terms and enjoys educating first-time buyers like Daniel. His extensive knowledge of VA loans, conventional loans, and other financing options ensures that Daniel gets a mortgage tailored to his needs, not just what’s most profitable for lenders.

Thanks to David’s guidance, Daniel feels confident about purchasing his dream home in Everett. He appreciates having a trusted advisor who genuinely cares about his financial well-being and enjoys helping people become part of the Everett community.

With David Haley’s help, Daniel embarks on his homebuying journey with peace of mind, knowing he’s made a smart, informed decision for his future.


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I was not aware I could write a review for David! It has been such a pleasure working with the whole team ! Even though... [read more]
I. G. 10/13/2023
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David and Jan work well together. When I have questions David is very patient with me. He will explain the process and the... [read more]
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David and team were awesome! They made it possible for us to get a loan for a house at lightning speed. David is also very... [read more]
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David is as knowledgable as they come and more than willing to share that knowledge with his clients. He helped make sure I understood not... [read more]
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Dave & Jan were amazing at helping us buy our first home! Dave spent over an hour with us before we agreed to anything just... [read more]
E. R. 5/23/2023
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World class experience w/David Haley and team! We hit it off right away and he had us get all of our docs in order just... [read more]
B. F. 5/13/2023
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