Buy in today’s hot market, with yesterday’s low rates!
The 2-1 Buydown is an exciting financing option that lowers the interest rate on the buyer’s mortgage temporarily, making the first two years of homeownership more affordable.
How does it work? The seller or builder kicks in enough money to reduce the buyer’s mortgage rate for the first two years of the loan. During the first year of the buy down, a 2% discount is applied toward the interest rate, and in the second year a 1% discount is applied. After the two years, the interest rate returns to the original percent for the remainder of the mortgage term.
- Used as a seller concession
- Get a lower interest rate for the first two years of ownership
- 2% rate reduction in year one
- 1% reduction in year two