Скачать или смотреть A 2-1 Buy-Down Could Be A Good Strategy.

A 2-1 Buy-Down Could Be A Good Strategy.

Now, conceptually, the 2-1 buy-down works like this, you use the seller’s credit to temporarily lower your interest rate for the first two years.

📉 In year one, it’s reduced by two points.

📉 In year two, it’s reduced by one point.

That means you’ll enjoy lower monthly payments during those early years, which can provide some breathing room financially.

But here’s the key, by year three, you need to be in a strong enough financial position to handle the full loan payment.

Otherwise, you’ll have to hope interest rates drop so you can refinance.

And when it comes to refinancing your own property? I’m not a huge fan. Because of amortization, the early years of your payments mostly go toward interest. So a refinance simply resets things and the banks win as you go right back to having most of your monthly payment going toward interest and not principal.

So let me know in the Comments ... Would you ever leverage a 2-1 Buy-Down?

Credits (IG):
Jermey Forcier - @jeremyforcier

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