Customers are very different, and their solvency and budget planning habits vary. Some customers have large savings, some find it compelling to pay the origination fee. That is why the option to adjust loan terms is a logical solution for customers who are ready to pay more at the beginning to achieve smaller monthly payments, or vice versa – for those who want to pay less applying for a mortgage and cover this amount over time.

Movin offer to adjust loan terms (Buy-up & Buy-down) is a newcomer to the mortgage market. Here, we explain how it works.

What is Buy-up?

To put it simply, it is an option to decrease the loan origination costs by slightly increasing the interest rate. You can decrease the origination fee down to even 0%. You benefit from this approach if you are able to repay the loan in a short period of time. You can also use Buy-up if you are having trouble with the origination fee – the initial savings are not large enough to cover all costs, yet a bigger monthly payment would not be a problem.

What is Buy-down?

Buy-down, on the contrary, means reducing the interest rate by slightly increasing the origination fee. By increasing the origination fee, the borrower can receive a lower interest rate, thus lowering monthly payments. This is beneficial if you have larger savings and want to save money in the long-term.