Скачать или смотреть What is a 2/1 Temporary Buydown?

You’ve probably heard of “buydowns” or “temporary buydowns” before, but you may not know exactly what that means. That’s where I come in.

A 2-1 buydown is a mortgage loan option in which the seller or builder reduces the homebuyer’s interest rate for the first two years of the loan. In year one, the interest rate is 2% less than the original, locked-in rate. In year two, the interest rate is 1% less.

Here’s an example. If you’ve locked in a 4.500% interest rate, the 2-1 Buydown Program would allow you to make monthly payments at a 2.500% interest rate for the entire first year of your mortgage. Then, in year two, your payments would be based on a 3.500% interest rate”. Finally, once you hit year three and for the remaining life of your loan, your payments would reflect your originally agreed upon 4.500% interest rate.

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