A Smarter Way to Buy 3075 Alaneo Pl: How a 3-2-1 Buydown Can Unlock Affordability in Wailuku

Buyers considering the beautifully upgraded 3075 Alaneo Pl in Wailuku—listed at $1,595,000—can now take advantage of a smart financing tool to make ownership more affordable: the 3-2-1 buydown. When paired with a 20% down payment, this strategy can substantially reduce initial monthly payments and create valuable breathing room during the first few years of your mortgage.

What Is a 3-2-1 Buydown?

A 3-2-1 buydown temporarily lowers your interest rate for the first three years of a fixed-rate mortgage:

• Year 1: Interest rate reduced by 3% → 3.875%

• Year 2: Interest rate reduced by 2% → 4.875%

• Year 3: Interest rate reduced by 1% → 5.875%

• Years 4–30: Full Jumbo fixed rate of 6.875%

This structure results in significantly lower monthly payments up front, giving buyers time to adjust, invest, or refinance.

Loan Scenario: Based on 20% Down

• Purchase Price: $1,595,000

• Down Payment (20%): $319,000

• Loan Amount: $1,276,000

• Loan Type: Jumbo 30-year fixed at 6.875% (zero points)

• Standard Monthly Payment (Years 4–30): $8,382.41 (principal & interest only)

How Much Does the Seller Need to Contribute?

To fund the 3-2-1 buydown, the seller must provide a credit of $59,155 at closing. This covers the monthly subsidies needed to reduce the borrower’s payment for the first three years:

• Year 1 Payment @ 3.875%: $6,000.23 (savings of $2,382.18/month)

• Year 2 Payment @ 4.875%: $6,752.70 (savings of $1,629.71/month)

• Year 3 Payment @ 5.875%: $7,548.02 (savings of $834.39/month)

The buydown subsidy offsets these monthly differences to ease the buyer into the full mortgage payment by Year 4.

Why the 3-2-1 Buydown Makes Sense for Buyers

• Lower Initial Payments: Save over $59K in the first 3 years

• Increased Affordability: Helps buyers qualify more easily for the mortgage

• Negotiation Advantage: A seller-paid buydown can be more attractive than a price reduction

• Planning Flexibility: Ideal for buyers expecting income increases or future asset liquidity

Final Thoughts

3075 Alaneo Pl is a luxury home in one of Central Maui’s most desirable neighborhoods. With stunning views and quality finishes, it's a strong long-term investment—and with a 20% down payment and a seller credit of $59,155, the 3-2-1 buydown offers a compelling way to make the purchase more manageable in today’s interest rate environment.

If you’re looking for a winning strategy like the 3-2-1 Buydown to buy the home of your dreams, contact Sara at 808-419-3556.