A newly married couple is having trouble affording a home.What type of mortgage arrangement would reduce the monthly payment as a result of an interest rate subsidy from a builder or real estate developer?

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A buy-down mortgage allows for a builder or real estate developer to subsidize the interest rate for the first few years of the loan, reducing the monthly payment for the borrower. This could be helpful for a newly married couple who may not have a large income yet. FHA-insured loans, balloon mortgages, shared-appreciation mortgages, and growing-equity mortgages do not have an interest rate subsidy from a builder or real estate developer.

A Newly Married Couple Is Having Trouble Affording a Home