Buydown: A Way To Save On Your Mortgage

Buying or Selling a home is a big undertaking. We are committed to helping buyers find every advantage possible when it comes to purchasing a home. A temporary rate buydown could help save on interest and have a lower mortgage payment for the first year or two of your loan.

What is a 2/1 buydown and how does it work?

A 2/1 temporary buydown provides a buyer a discounted interest rate for the first 2 years of the loan term. A lump sum of money is deposited, by seller/builder, into an escrow account to pay the difference in rate for the buydown years. These funds are then drawn by the servicer and used to reduce the borrower’s payment each month until the third year when they start making the full PITI payment. During the buydown period, taxes and insurance are still collected as part of their payment.

Thinking about buying a home? We have a way for you to save on interest the first 2 years of your loan!

Product Summary

  • Conventional (FNMA/FHLMC) and FHA purchase only
  • Primary Residence
  • Minimum FICO 680
  • Buydown accounts may not be funded by the Borrower or Lender
  • Borrower and Contributor must execute a buydown agreement at closing
  • Taxes, Insurance, and applicable mortgage insurance are required to be paid by the borrower as part of the payment for the full 30 years, including the first 2 buydown years


Who Can Benefit from a Temporary Buydown?

  • Borrowers can benefit because they are able to ease into their mortgage a little more gradually with a graduated payment.
  • Sellers can benefit as well. Offering a temporary buydown can give a potential homebuyer an extra incentive to purchase your property, without having to compromise on the list price.


The Advantage

When a buyer takes advantage of a temporary rate buydown it allows them to save on interest and have a lower monthly payment during the first 2 years of their loan. If this sounds like a fit for you, you can apply online. Or if you prefer to talk with someone just give us a call at 888-651-7466.

Ready to get moving? Let us help you get started NOW!