What Is a 2-1 Buydown?

A 2-1 buydown is a type of temporary interest rate reduction. Your rate is lowered by 2 percent in the first year and 1 percent in the second year, then returns to the full note rate for the rest of the loan.

How It Works

The cost of the reduced payments in years one and two is covered upfront, often by the seller or builder. This gives you lower payments while you settle into your new home.

Why Buyers Like It

A 2-1 buydown eases you into your mortgage with lower initial payments, which can be helpful if you expect your income to grow or plan to refinance if rates fall.

Who Pays for It?

Because buydowns are commonly funded as a seller or builder concession, they're often negotiated as part of your offer, which is where your agent adds value.

Want to Explore a Buydown?

As your REALTOR, I can help you negotiate a seller-paid 2-1 buydown and connect you with lenders to structure it. Reach out and we'll see if it fits.