2-1 Buydown

Ease into your mortgage with lower payments in the first two years.

A 2-1 buydown is a temporary reduction that lowers your mortgage payments during the first two years of your loan. In year one, your payment is based on an interest rate that is 2 percent lower than your locked in rate. In year two, it drops by 1 percent. By year three, your payment returns to the full fixed amount. This program can ease you into homeownership with lower upfront payments and provide extra breathing room while you settle into your home and budget.

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2-1 Buydowns Are Good For:

A 2-1 buydown is ideal for buyers who want lower mortgage payments during the first two years of their loan. It’s also a strong fit for those expecting future income growth, purchasing new construction, or using seller incentives to ease into homeownership.

2-1 Buydown Details

Loan Type Basics +

A 2-1 buydown is not a separate loan type. It is a financing feature added to a fixed-rate mortgage. The temporary lower payments are made possible through an upfront payment, often covered by the seller, builder, or lender.

Who Pays for the Buydown +

The buydown cost is typically paid by the seller, builder, or lender as a closing incentive.

Choosing the Right Fit +

A 2-1 buydown works best for borrowers who want initial payment relief. It helps you ease into homeownership while benefiting from long-term fixed-rate security. A loan officer can help you run the numbers and see if it makes sense for your situation.

Not Sure This Is the Loan You Were Looking For?

Secure Your 2-1 Buydown Loan at One of Our Branches

If you are looking for a creative way to lower your initial mortgage payments, a 2-1 buydown could be a smart option. Our loan officers are here to walk you through the structure, costs, and potential savings so you can make the best decision. Let’s talk and find out if this program is right for you.

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