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 2^nd 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 2^nd homes only.

Qualify Rate 6%
1^st year 4%
2^nd Year 5%
3^rd Year 6%