01/03/2026
๐โโ๏ธAre you looking for a way to purchase a home today in the current buyers market. Need a couple of years to get on your feet? Lower payments, maybe extra funds in your pockets to make some upgrades or repairs? Planning on refinancing in 2 years when rates drop? This may be what you are looking for ๐ซถ
โจ Whatโs a 2-1 Buydown? โจ
A 2-1 buydown is a way to temporarily lower your mortgage payment for the first two years of your loan.
๐น Year 1: Payment is calculated as if the rate were 2% lower
๐น Year 2: Payment is calculated as if the rate were 1% lower
๐น Year 3 & beyond: The loan returns to the original note rate
๐ For illustration only:
If the final rate were 5.xx%, the first year would be calculated at 3.xx%, the second year at 4.xx%, and then it returns to 5.xx% going forward.
๐ก In some situations, this can be structured so the seller covers the cost as part of the overall negotiations (subject to lender guidelines and approval).
๐ This is a general explanation for educational purposes only. Exact rates, payments, APR, and qualification are determined by a licensed mortgage professional.
Let me know if this is something you would like more information on. I will help you get connected with some trusted lenders. You can decide the best solution for you. ๐งก
Tami Monasmith
HomeSmart AZ
831.710.4464
[email protected]
www.dreamhouse.properties
Dream House Realty CA
Broker 01867113 ๐
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