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Understanding Your Monthly Payment

Your monthly mortgage payment consists of several components. The largest portion is typically principal and interest (P&I), which pays down your loan balance over time. Property taxes and homeowner's insurance are usually collected monthly by your lender and held in an escrow account.

If you're a member of a homeowners association, your monthly HOA dues cover community amenities and maintenance. Private mortgage insurance (PMI) is required if your down payment is less than 20% of the home price and can be removed once you reach 20% equity.

Seller Concessions

Red Cedar Homes frequently offers seller concessions — funds contributed by the builder toward your closing costs. These can significantly reduce the cash you need at closing. The amount varies by community and home, so contact us for current available concessions.

Rate Buydowns

A rate buydown reduces your mortgage interest rate, either temporarily or permanently. In a 2-1 temporary buydown, your rate is reduced by 2% in the first year and 1% in the second year before returning to your note rate in year three. This can save hundreds per month during the early years of homeownership when household budgets are typically tightest.

Permanent buydowns reduce your rate for the entire loan term. Red Cedar may offer to cover the cost of a buydown as part of our closing cost assistance programs.

Ready to Take the Next Step?

Once you have an idea of your monthly budget, explore our available homes or visit a community. Our sales team and preferred lending partners are ready to help you find the right home at the right price.