How long must a member stay in their home to break even if they utilized the NACA-Buy Down?

A member must stay in their home for no less than five years to break even when utilizing the NACA Buy Down program. This policy is rooted in the structure of the Buy Down, which involves pre-paying a portion of the mortgage interest upfront to lower monthly payments. The initial investment in this buy-down is significant, and the financial benefits gained from reduced monthly payments accumulate over time. Given the upfront cost, it typically takes several years for the savings in lower payments to equal the initial investment.

By holding onto the home for five years, a member maximizes their ability to recoup the costs associated with the buy-down while benefiting from the lower monthly mortgage payments throughout that period. Beyond the five-year mark, members generally begin to see a clearer advantage in overall cost savings, making it a financially prudent decision to stay at least that duration.