Bolt Home Loans Partners with UWM to Offer Limited-Time 1-0 Temporary Rate Buydown

Making Homeownership More Affordable

At Bolt Home Loans, helping buyers achieve homeownership goes beyond simply offering competitive mortgage rates. By partnering with UWM, one of the nation's largest wholesale mortgage lenders, Bolt Home Loans can provide financing solutions designed to reduce upfront financial pressure while giving buyers more confidence during their first year of homeownership.

Through this limited-time promotion, eligible borrowers receive the benefit of a lower first-year payment without permanently changing their mortgage interest rate.

Instead, a temporary buydown account covers the payment difference during the first 12 months.

Beginning in Year Two, borrowers simply transition to making their regular mortgage payment based on their original note rate.

How a 1-0 Temporary Rate Buydown Works

Unlike a permanent rate buydown, a 1-0 Temporary Rate Buydown lowers the borrower's effective payment—not the actual note rate—for the first year of the mortgage.

Here's how it works:

• The loan closes at the agreed-upon note rate.

• A temporary buydown fund is established at closing.

• During the first year, the borrower makes payments calculated as if the interest rate were 1% lower.

• The buydown fund covers the difference between the lower payment and the actual mortgage payment.

• Beginning in Year Two, the borrower simply makes the regular payment based on the original note rate.

This approach provides immediate payment relief while preserving long-term financing flexibility.

Example: A $500,000 Mortgage

To illustrate the savings, let's assume:

Standard Monthly Payment

At a 6.50% note rate:

Principal & Interest: Approximately $3,160 per month

First-Year Payment with the Buydown

Payments are calculated as though the interest rate were 5.50%.

Principal & Interest: Approximately $2,839 per month

Estimated Savings

• Monthly Savings: Approximately $321

• First-Year Savings: Approximately $3,852

While the borrower still has a 6.50% mortgage, the temporary buydown account pays the difference during the first year, resulting in a lower monthly payment.

Illustrative example only. Actual payments vary based on interest rate, loan terms, taxes, insurance, and borrower qualifications.

Why the 25 Basis Point Promotion Matters

Traditionally, a 1-0 Temporary Rate Buydown has cost approximately 87.5 basis points.

Through UWM's limited-time promotion, eligible loans can receive the same benefit for just 25 basis points, dramatically reducing the cost of offering the program.

On a $500,000 loan, that means:

That's a potential reduction of approximately $3,125 compared with standard pricing.

Why Buyers Appreciate This Program

The first year of owning a home often comes with unexpected expenses, including:

• Moving costs

• Furniture purchases

• Appliance upgrades

• Landscaping

• Utility setup fees

• Home improvements

Lower mortgage payments during that first year can provide valuable breathing room while homeowners settle into their new home.

A Valuable Tool for Real Estate Agents

Bolt Home Loans is also making it easier for its real estate partners to help buyers overcome affordability concerns.

Rather than negotiating a significant price reduction, sellers may be able to contribute toward a temporary buydown—subject to loan program guidelines—allowing buyers to enjoy lower monthly payments while helping preserve the home's purchase price.

For agents, that can mean:

• More affordable monthly payments for buyers

• Greater purchasing confidence

• Stronger offers in competitive markets

• Additional financing solutions to help transactions reach the closing table

Who May Benefit Most?

This program may be an excellent fit for:

• First-time homebuyers

• Move-up buyers

• Buyers relocating for work

• Borrowers expecting future income growth

• Buyers who may refinance if interest rates decline

• Sellers looking for an attractive buyer incentive

Frequently Asked Questions

Does my interest rate permanently decrease?

No. Your note rate remains the same. Only your first-year monthly payment is reduced through the temporary buydown.

Who funds the buydown?

Depending on the transaction and program guidelines, the buydown may be funded by the seller, builder, lender, or another eligible interested party.

Is this available on all loans?

The promotion applies to eligible conventional and government purchase loans originated through Bolt Home Loans and delivered through UWM, subject to program guidelines and underwriting approval.

Can I refinance later?

Yes. If interest rates decline or your financial goals change, you may choose to refinance in the future, subject to qualification and market conditions.

The Bottom Line

Creative financing solutions continue to play an important role in today's housing market.

By partnering with UWM to offer this limited-time 1-0 Temporary Rate Buydown, Bolt Home Loans is giving homebuyers another opportunity to reduce first-year monthly mortgage payments while easing the financial transition into homeownership.

For buyers searching for greater affordability—and for real estate professionals looking to provide more value to their clients—this promotion represents another example of how the right lending strategy can make homeownership more accessible.

If you're considering buying a home or want to learn whether this program fits your financial goals, contact Bolt Home Loans today. Our mortgage experts can explain your options, estimate your potential savings, and help you determine whether this limited-time opportunity is right for you before the promotion ends.