2/1 Buydown
What is a 2/1 buydown Loan Program is a mortgage program that offers a lower mortgage payment during the first two years of the loan term. In the first year, the principal/Interest payment will be based 2% below the actual note rate you are qualified for today. The P/I payment for the 2nd year will be 1% below the initial note rate. The remainder of the term (once the 2 years are over) will be based on the actual note rate you qualified at. This program is offered using seller concessions or even a builder to fund the buydown which is collected at closing. It's like they are helping to make the mortgage payment for the first 2 years. This program will save hundreds of dollars a month, especially while we are in a higher-rate market. Making the mortgage more affordable. Primary and 2nd homes only.
Qualify Rate 6%
1st year 4%
2nd Year 5%
3rd Year 6%