Buydowns Aren’t a Gimmick — They’re a Strategy

You’ve probably heard the term “2-1 buydown” tossed around a lot this past year — especially by sellers trying to sweeten the deal in a higher-rate market.

But let’s clear something up:

A buydown isn’t a gimmick. It’s a legit financial tool — when used strategically.

Here’s how it works:

• A 2-1 buydown means your interest rate is lowered by 2% in year one, and 1% in year two.

• The buydown is paid by the seller, not the buyer (usually as a credit).

• It lowers the initial monthly payment without using your cash.

Why it works:

✅ Makes payments easier in the first two years

✅ Gives buyers breathing room while waiting for refinance opportunities

✅ Helps sellers move inventory without cutting price

✅ Allows agents to write stronger offers with better optics

I recently had a client save over $7,000 in the first two years — and refinance before they ever hit the full note rate.

Buydowns are bridges — not bandaids.

They help buyers enter the market now while still planning ahead.

Let’s structure the win.