Frequently Asked Questions

Introducing the Ultimate Homebuyer Advantage: The 2/1 Buydown!

Are you dreaming of becoming a homeowner? Imagine stepping into your new home and enjoying all the perks of homeownership without the stress of high initial mortgage payments. With the 2/1 Buydown, your dream can become a reality! This innovative financing solution is designed to make your home buying experience smoother, more affordable, and filled with financial benefits.

What is a 2/1 Buydown?

A 2/1 Buydown is a powerful financial tool that allows home sellers to contribute to your mortgage, significantly reducing your monthly payments for the first two years of homeownership. Here's how it works:

• Year 1: Your interest rate is reduced by 2% below the current market rate.
• Year 2: Your interest rate remains 1% below the market rate.
• Year 3 and Beyond: Your interest rate returns to the original market rate.

Benefits for Home Buyers:

1. Immediate Savings: With a 2/1 Buydown, you'll enjoy substantial savings from day one. Lower interest rates mean lower monthly payments, freeing up your budget for other priorities.
2. Financial Flexibility: Lower monthly payments in the early years provide flexibility to allocate your funds to home improvements, savings, or other investments, allowing you to build wealth and financial security.
3. Easier Qualification: A 2/1 Buydown may make it easier for you to qualify for a mortgage, helping you secure your dream home even if you have a tight budget or are concerned about high upfront costs.
4. Predictable Payments: Unlike adjustable-rate mortgages, which can be unpredictable and stressful, the 2/1 Buydown offers stable payments for the first two years, allowing you to budget with confidence.
5. Competitive Advantage: When you make an offer on a home, a 2/1 Buydown can make your offer stand out among other potential buyers, increasing your chances of getting the home you desire.

Benefits for Home Sellers:

1. Faster Sale: Offering a 2/1 Buydown can make your home more appealing to a broader range of buyers, potentially reducing the time your property spends on the market.
2. Avoid a Price Reduction: A 2/1 Buydown has a more significant impact on the buyer's payment then doing a large price reduction so it helps you net more proceeds from your sale.
3. Attract Serious Buyers: Buyers who receive assistance with their mortgage payments are more likely to be committed and serious about purchasing your property.
4. Competitive Edge: In a competitive real estate market, offering a 2/1 Buydown can make your home stand out among similar listings, attracting more potential buyers.

Don't miss out on the opportunity to make your homeownership dreams come true while enjoying the financial benefits of a 2/1 Buydown. It's a win-win situation for both buyers and sellers. Contact your real estate agent or mortgage professional today to explore how the 2/1 Buydown can help you achieve your homeownership goals and secure your dream home. Don't wait—start your journey to homeownership with confidence and savings!

The actual amount of the savings will vary depending on the purchase price and the down payment amount, but below is a sample scenario.

Purchase Price $520,000

Loan Amount $477,000

The 2% reduction in rate for the 1st year would save you $615 a month in your payment.  $2,738 vs $3,353.