What Buyers Should Know About 2-1 Buydowns

 

Here’s what every homebuyer should know about 2-1 buydowns.

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Are you sick of rising interest rates? You aren’t alone. Tons of potential homebuyers have been turned off from purchasing a home because rates are so much higher than they were at the beginning of the year. If you’re in this position, what can you do? 

 

Fortunately, many lenders offer a product called a 2-1 buydown, and it’s designed to lower your rate and get you into your dream home. Here’s how it works: For the first year of your loan, your interest rate will be 2% less than it would've been. For the second year, your interest rate will be 1% less. After that, your rate will graduate to the full amount.

 

"A 2-1 buydown might be exactly what you need to get into your dream house."

 

This program is fantastic (especially for first-time buyers) because it allows you to ease into your interest rate. Plus, you might not even have to pay any upfront costs. If you work with a great agent, they can negotiate seller concessions to pay for your buydown for you. 

 

Many buyers are finding it difficult to purchase a home in this market, but a 2-1 buydown might be exactly what you need to get into your dream house. Even if rates fall after the two-year period, you can always refinance, so it’s a win-win. 

 

If you’d like to learn more about this program or have any questions, please call or email me. I’d love to speak with you!