Taylor Morrison Home Corp. (NYSE: TMHC) over the weekend launched a 2-1 buydown from a fixed rate mortgage program during which Taylor Morrison will help pay some of the interest cost during the initial years of homeownership.

The Taylor Morrison 2-1 rate buydown for Conventional and FHA financing for qualified owner-occupied borrowers with a minimum 680 credit score allows consumers to pay their mortgage payment at a rate 2% below the fixed rate mortgage the first year and 1% lower the second year before the mortgage returns to a fixed rate over the remaining life of the loan. This effectively cuts the rate of the mortgage over the first two years of the loan without the risk associated with an adjustable rate loan in which rates can rise in perpetuity.

"While homeownership is attainable for many people, the uncertainty in not knowing what the future holds with respect to interest rates can cause real angst for today's buyers," said Taylor Morrison Chairman and CEO Sheryl Palmer. "We understand this impact and wanted to remove that barrier for our customers."

The 2-1 rate buydown began Jan. 4 on move-in ready homes that close on or before April 30, 2019.

"The buydown program is an excellent choice for many families and hasn't been widely used for some time," said Tawn Kelley, president of Taylor Morrison Home Funding. "For a builder to offer this kind of financial incentive to ease the costs of mortgage interest, it can make a significant difference to a family's first years settling into their home and is quite unique.

"It is a perfect solution for people who may be expecting a promotion or working on paying off a car loan or credit card balances or, just wanting the extra dollars to bolster their savings. To put it simply, it offers our customers a priceless gift—savings with the peace of mind knowing they have a mortgage that is secure no matter how long they choose."

The buydown rates are calculated from Taylor Morrison Home Funding's current market rate for Conventional and FHA fixed rate mortgages 15- or 30-year term at time of rate lock. To qualify for the program, buyers must finance their home with Taylor Morrison's affiliated lender, Taylor Morrison Home Funding and use the closing agent selected by Seller.