How a 2-1 Buydown Can Save You $6,000+ in Year One

With rates still bouncing around, a lot of buyers feel stuck.They want to move but can’t justify the monthly payment jump.

Enter the 2-1 buydown — a tool savvy buyers (and agents) are using to bridge the gap.

What Is a 2-1 Buydown?

It’s a temporary rate reduction funded by the seller or builder.

• Year 1: Your interest rate is reduced by 2%

• Year 2: It’s reduced by 1%

• Year 3 onward: You pay the full rate

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The discount is paid upfront, often as a seller credit — meaning it doesn’t come out of your pocket.

Real Example (OC Buyer This Month):

• $750,000 purchase

• $600,000 loan

• Standard rate: 6.75%

• 2-1 buydown used

  
  

✅ Year 1 rate: 4.75% = $626/month in savings

✅ Year 2 rate: 5.75% = $321/month in savings

✅ Total savings over two years: $11,364

That’s nearly a full year of free mortgage payments.

And when rates drop?They’ll refinance, possibly before Year 3 even kicks in.

Why It Works for Agents:

Your buyers get a lower payment up front+Your sellers move inventory with less price drop pressure

Everyone wins.

Pro Tips:

• Pair the 2-1 buydown with homes offering seller credits

• Use it with FHA, VA, and conventional loans

• Stack it with first-time buyer programs for even lower entry cost

• Still eligible for refinance at any time — no penalty

Bottom Line:

If you’ve been waiting for lower rates, the 2-1 buydown might be the smarter way to win now and refinance later.

You don’t need to wait to save. You just need the right structure.

Let’s apply and see if a buydown works for you.

APPLY NOW