A 2-1 buydown lowers your rate by 2% in year one and 1% in year two, then settles at the full note rate from year three on.
A good fit for
- Buyers who expect their income to grow
- Purchases where the seller or builder offers concessions
How it works
- The cost of the reduced payments is paid upfront, often by the seller
- You qualify at the full note rate
Keep in mind
- Plan for the payment increases in years two and three
Is a 2-1 Buydown Loan right for you?
Every lender's guidelines differ — Chip will shop them for you.
Related loan options
This page is general education, not a loan offer or commitment. Terms, eligibility and availability vary by lender and change over time.