Kristin Coffelt May 12, 2025
If you’re considering buying a home, now might be the perfect time to explore a 2/1 rate buydown. This financing option is becoming increasingly popular among buyers and sellers, and for good reason—it can save you thousands during the first two years of your mortgage!
What is a 2/1 Rate Buydown?
A 2/1 rate buydown is a mortgage financing tool where the interest rate is reduced by 2% in the first year and 1% in the second year before returning to the regular rate in year three. It’s a great way to ease into your mortgage payments while adjusting to other homeownership costs.
How Does It Work?
Benefits of a 2/1 Rate Buydown:
Who Should Consider It?
Though not as common, we are seeing the occasional 3/2/1 rate buydown. This is similar to the 2/1 buydown except the rate buydown is for 3 years and begins with a 3% rate buydown the first year.
Let’s Find the Right Fit for You!
At Boutique Real Estate, we’re here to guide you through all your financing options and help you find the perfect home. Want to learn more about how a 2/1 rate buydown can work for you? Reach out today at [email protected] or call/text (515) 314-4777.
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