The 2/1 and 1/0 Buydown & How it Benefits Buyers + Sellers

Attention prospective sellers and buyers shopping for a home!  With the market move that we have seen over the last quarter we are finding that 2/1 and 1/0 Buydown Mortgage options are becoming very popular.  A buydown mortgage allows the home buyers to use prepaid interest from the seller to take advantage of lower rates than the market is currently offering.  In the case of a 2/1 buydown with a 7% market rate the buyers first year interest is at 5% and the second year is at 6%!  The savings paid by the seller sits in an escrow account with the lender and if the buyers were to sell the home or were able to take advantage of a potential refi if rates head back down, that money becomes a principal reduction and goes towards the payoff of the loan.  It helps both the buyers to get into a more comfortable payment and helps the seller to attract more buyers to choose their home with the spike in inventory we are seeing, often in place of a price reduction.  Take advantage of this today to help your listing become sold sooner!

For more information reach out to Matt Helfrich at or Jessica Jones at

Primary home buydown example

Second home buydown example

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