“The payment scares me.”
Can my mortgage payment start lower?
Yes, for the first few years. The seller, a builder or you can pay at closing to lower your payment at the start. Then it steps up to the full payment. You qualify at the full payment, so the step up is planned for from day one. The full schedule and APR are below.
For home sellers
Selling? Offer a lower start instead of a price cut.
Give the buyer a credit at closing that lowers their payment for the first few years. We show you that next to a price cut.
Showings but no offers?
Buyers may like the home and balk at the payment. A credit can lower it for the first few years.
Thinking about a price cut?
A price cut lowers the payment a little for the whole loan. A credit lowers it more at the start. We show you both.
Buyer’s agent asking for credits?
Point the credit at a lower payment. We show you what it buys.
What you'll need
- The list price
- The price cut you’re thinking about
- The buyer’s loan type, if you know it
Is it better than a price cut?
It depends on the home. A price cut lowers the payment a little for the whole loan. A lower start lowers it a lot at first. We show both.
Quick answers
Nervous about today’s rates?
Start with lower payments while you settle in. The full payment comes later, and you’ve already qualified for it.
Payment stopping the offer?
The seller or the builder can pay for the lower start. Or split it with you.
Selling, and no offers?
Offer to pay for the buyer’s lower start instead of cutting the price. We show you both numbers side by side.
The numbers
Year by year, at our latest posted rate.
Every payment, how long it lasts, the rate and the APR, side by side.
Every payment, at the same size. Example: a $750,000 home with 25% down ($187,500) and a $562,500 loan. 30-year fixed with a lower start.
- Year 1 $2,808 a month Principal and interest Rate 4.375% · APR 7.424%
- Year 2 $3,150 a month Principal and interest Rate 5.375% · APR 7.424%
- Year 3 $3,509 a month Principal and interest Rate 6.375% · APR 7.424%
- Years 4 to 30 $3,885 a month Principal and interest Rate 7.375% · APR 7.424%
Interest rate 7.375% fixed · APR 7.424% · 360 monthly payments at a fixed interest rate. The rate is lower in years 1 to 3, as each year shows, then the full rate from year 4.
Taxes and insurance are not included, so the actual payment will be higher.
The lower start costs about $26,300 at closing. The seller, a builder or you can pay it. You qualify at the full payment, so the step up is planned for from day one.
Example only, not a quote or an offer to lend. The interest rate and APR are Home First Financial's posted 30-year fixed rate as of Friday, October 9, 2026: 7.375% (7.424% APR), based on the purchase of a $750,000 single-family home or condo, primary residence, in California, with 25% down, a 780 credit score and 0 discount points. The APR includes estimated lender fees. Your rate, APR and payment depend on the loan amount, down payment, credit and property, and they can change without notice. Payments shown are principal and interest. Property taxes, insurance, HOA dues and mortgage insurance are not included, so the real payment will be higher. Not a commitment to lend. With this lower start, the rate is lower for the first 3 years, as the rate beside each year shows, and the lender checks that you can afford the full payment. The lower start costs about $26,300, paid at closing. If you pay for the lower start yourself, its cost counts as a finance charge and the APR is a little higher, about 7.465%. A seller or builder credit for it is limited to 9% of the price ($67,500) with 25% down. Not every loan allows it, and FHA, VA and jumbo rules differ.
Does it fit you?
3 quick questions. No signup. No credit pull.
What you'll need
- Pay stubs or other proof of income
- Two months of bank statements
- A home you like, or a price range
- Ask the seller or builder early: the credit goes in the offer
How does it go, start to finish?
How does a lower start work?
Someone pays money at closing: the seller, a builder or you. That money covers part of your interest for the first few years, so your payment starts lower. Then it steps up to the full payment for the rest of the loan.
Your loan officer shows you each year’s payment, with the rate and APR, before you decide.
Why would a seller pay for it?
A seller who wants to close may offer a credit instead of cutting the price. A builder with homes to sell may do the same.
Ask early. The credit has to be written into your offer, and loan rules limit how much a seller can pay.
What happens when the full payment starts?
You see it coming. You qualify for the full payment up front, so the step up is planned for from day one. It’s in your loan papers before you sign.
If rates fall later, you may be able to refinance. A refinance needs approval and isn’t guaranteed, so pick a full payment you’re comfortable with today.
Questions people ask
Who pays for the lower start?
Often the seller or the builder, as a credit in the purchase contract. You can also pay for it, or split it.
Do I still qualify at the full payment?
Yes. The lender qualifies you at the full payment, so the step up is planned for from day one.
How much does a lower start cost?
It depends on the price, the loan and how much lower the start is. Your loan officer shows the cost next to the payments it lowers, before anyone pays for it.
Is there a limit on what a seller can pay?
Yes. Loan rules cap seller credits. Your loan officer checks the limit for your loan before the offer goes in.
Does my rate change when the payment steps up?
No. The loan has one fixed rate. The money paid at closing covers part of the interest in the first years. After that, you pay the full payment at the loan’s rate.
Does it work with every loan?
Some versions have limits. The longest one isn’t offered on FHA loans or with the interest-only loan. Your loan officer tells you which versions fit your loan.
Does Home First Financial offer rate buydowns in California?
Yes. Home First Financial offers home loans across California where the seller, a builder or you can pay to lower the payment for the first few years. You qualify for the full payment up front. Subject to qualification.
Talk to a loan officer
Call or email a licensed loan officer.
The application takes about 15 minutes, on the secure site we use. Do what you can, and your loan officer calls to fill in the rest.
Prefer to meet in person? Our main office is in Tustin, by appointment.
The fine print
You qualify at the full note rate. Buydown funds are paid at closing and limited by loan rules. Two-year and one-year versions are also available. The three-year version is not offered on FHA loans and is not available with the 40-year interest-only loan. Rates change daily. Examples are estimates, not quotes. Not a commitment to lend.
The APR shown is for the note rate.
Also called: a temporary rate buydown: 3-2-1, 2-1 or 1-0.
Home First Financial is not affiliated with HUD, FHA, VA, USDA, CalHFA or any government agency.
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