Rate Buy-down Matrix

What: A rate buy-down lets you ‘purchase’ a lower interest rate for your Client by trading bps of (lower) commission in return for bps of (lower) rate.

Why: It’s best used as an incentive tool for retaining a Client who may be shopping around.

How: It’s simple! Just email your XMC Underwriter when you submit your deal number and include the deal and the interest rate you want. We’ll respond with the dollar amount of commission you can expect to earn with that rate.

Please refer to the chart below for buy-down rates and example calculations.

 Cost from Commission
Three-year Terms
Buy-down 10 BPS
26 BPS
Five-year Terms
Buy-down 10 BPS
35 BPS