Newfi Lending Launches New 2-1 Buydown Program

EMERYVILLE, Calif., Jan. 9, 2019 /PRNewswire/ -- Newfi Lending, a technology-enabled residential mortgage lender and portfolio company of Warburg Pincus, a global private equity firm focused on growth investing, today announced the launch of Newfi's new 2-1 Buydown program geared toward helping consumers, realtors, and brokers.  Newfi is looking ahead to help both home sellers and buyers in this rising interest rate market. 

As the home purchase market moves from a seller's to a buyer's market across the country, realtors and builders are looking to offer fresh incentives to attract committed buyers.  Newfi can now use seller concessions to help secure the buyer reduced mortgage payments for the first two years of their home loan.  

The 2-1 Buydown program is simple: At closing, the seller contributes an upfront fee, which will "buy" the rate "down" for the first two years of the loan. Newfi then places this upfront fee into an escrow account, where disbursements are made to make up the difference in monthly payments. The program will allow 2-1 buydowns where your payment is calculated at a rate reduction of 2% for the first year and 1% for the second year of the loan.  This knocks down the new homeowner's initial out-of-pocket mortgage payment, helping them to build equity as they ease into their new home. 

Here's an example: On a $250,000 loan with a rate of 5%, the monthly payment would be $1,342. After a temporary 2-1 buydown of $5,232, here's what the reduction in monthly payments would look like for the first two years.

Our 2-1 Buydown program is offered for 30-year fixed and 15-year fixed rate products through Fannie Mae and FHA(HUD)

About Newfi Lending

Founded in 2014 by industry veterans, Newfi Lending is a national mortgage lender reshaping the borrowing experience through a combination of proprietary technology and product innovation. Newfi delivers a more efficient and transparent process resulting in lower costs and higher levels of customer satisfaction and trust. For more information, visit www.newfi.com.

About Warburg Pincus

Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $46 billion in private equity assets under management. The firm's active portfolio of more than 170 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 17 private equity funds which have invested more than $72 billion in over 845 companies in more than 40 countries. For more information please visit www.warburgpincus.com.

Media Contact

For Newfi Lending:

Steve Abreu

510.844.4001 

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SOURCE Newfi Lending