Archive for November 2022
A 2-1 Buydown Loan Explained
A 2-1 buydown is a mortgage loan option where the seller or builder reduces the homebuyer’s interest rate for the first two years of the loan. This means that for the buyer, the interest rate is two percentage points less than the original in the first year, and one percentage point less in the second…Read More
2-1 Buydown Loan: What is it, how does it work, and who does it benefit?
The current rise in interest rates has created a large affordability issue when it comes to buying a home. As a result, temporary buydowns have become an option that some buyers and sellers are considering. A 2-1 buydown is a mortgage lending program that offers a lower mortgage payment during the first two years of…Read More