"Under a 1-0 buydown, the borrower's payment is calculated as if the interest rate were 1 percentage point lower in the first year. UWM's structure gives borrowers a lower first-year payment at no additional cost to the borrower or the broker, with the lender credit covering the buydown."
"Temporary buydowns have been one of the most widely used tools to manage payment shock in a high-rate environment, particularly on purchase loans. By removing the buydown cost, lenders give brokers another concession they can bring to sellers or listing agents."
"UWM also introduced home equity loans, offered as both standalone and piggyback second liens. The products provide a fixed rate and fixed term, funded in a single lump sum, allowing debt-to-income ratios up to 50%."
UWM provides a 1-0 buydown, allowing borrowers to pay as if the interest rate is 1% lower in the first year, with costs covered by lender credits. This strategy helps manage payment shock in high-rate environments, particularly for purchase loans. Additionally, UWM has launched home equity loans, available as standalone or piggyback second liens, with fixed rates and terms. These loans cater to various needs, including renovations and debt consolidation, while allowing debt-to-income ratios up to 50% and amounts from $25,000 to $500,000.
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