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2-1 Buydown

A 2-1 buydown loan is a mortgage with a reduced payment for the first two years of the loan, and then the third year of the loan, the payment will rise to its note rate. So basically, you get a lower mortgage payment in the first two years of your loan.

Who is the best borrower for a 2-1 buydown loan?

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Why 2-1 Buydown

With increasing mortgage rates, many borrowers are looking for loan options to help combat higher monthly payments. ARM loans and discount points may come to mind- but a 2-1 temporary buydown loan could be a strong alternative.  

A 2-1 buydown loan reduces your rate and payment for the first two years of the loan, freeing up funds and making it easier to afford a home. 



Reach out to your trusted mortgage experts today to discuss which loan products best suit your financial needs.

How do I qualify for a 2-1 buydown loan?

A borrower must qualify for the loan at the current mortgage rate. For example, if you are getting a 30-year fixed-rate loan and the rate is 7%, then you must also be able to qualify for the loan at that rate. In addition, your DTI or debt-to-income ratio must not exceed that required to qualify for the loan.

The 2-1 buydown loan is an excellent tool for first-time homebuyers and others to use as they adjust to making a mortgage payment. With the savings, they can make repairs and upgrades to their home or put the savings away to prepare for the higher rate to come. So if you want to buy a home now and need a solution to lower your monthly payments, a 2-1 buydown could be for you!

Find a Loan Officer

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