The 2/1 Buydown Mortgage Loan Process
- The 2/1 buydown must be paid by the seller
- In Year 1 your rate will be lower by 2%
- In Year 2 your rate will be lower by 1%
What is a 2/1 Buydown?
To combat the recent changes in market interest rates, the 2/1 buydown was released to give buyers some breathing room until the market settles. This option is available on conventional mortgage loans, allowing a buyer to get a fixed-rate loan, starting at 2% lower for the first year and 1% lower for the second year. If the market drops, you can always refinance without prepayment penalties.
Invest wisely with a 2/1 buydown mortgage loan. Enjoy lower initial rates for two years, then transition to standard payments. It’s a strategic approach to homeownership that offers flexibility and savings. Contact us today to explore your options and secure your dream home.
