Temporary Buydowns
Temporarily lower your interest rate for
one, two or three years.
Temporarily lower your interest rate for the first two or three years.
Temporarily lower your interest rate for the first two or three years.

3/2/1, 2/1 and 1/0 Buydown Programs

Our buydown programs give homebuyers the opportunity to lower their mortgage interest rate for the first one, two or three years of their loan. It’s an option that keeps homeownership within reach, even as interest rates continue to climb.


Here’s how it works: As a homebuyer, you qualify for a certain interest rate. With a 2/1 buydown, your interest rate is lowered 2% for the first year and 1% for the second year. By the third year, the interest rate returns to the original rate on the loan. 



A 3/2/1 buydown is similar, but the interest rate is lowered by 3% the first year, 2% the second year and 1% the third year. In the fourth year, the interest rate returns to the original rate. A 1/0 buydown lowers your interest rate 1% the first year and then it returns to the original rate. All loans are eligible for refinance every six months. 



What are the benefits of a 3/2/1, 2/1 or 1/0 buydown?


The biggest benefit is a lower interest rate for the first one, two or three years of the home loan. A lower interest rate usually means a lower mortgage payment. For homebuyers, a buydown can potentially save you thousands of dollars by offsetting initial housing costs, and you can use the money to decrease debt or increase savings! For some, it might go towards home renovations, paying off a credit card or supplementing an emergency fund. Like other concessions, you can request a temporary buydown during the negotiation process with a seller.



For real estate agents and builders, a temporary buydown offers a win-win solution in a buyer’s market. It is an alternative to reducing the list price and keeps the property affordable while providing an attractive seller concession or buyer incentive.


Key takeaways

As with any financial decision, it is important to evaluate the short-term and long-term effects. A 3/2/1, 2/1 and 1/0 buydown offers a temporary reduction in the interest rate. But after the initial buydown period (one, two or three years), the interest rate will return to the original rate, so buyers should consider how the original rate will impact monthly payments moving forward.



If you are contemplating a temporary buydown, we encourage you to contact a local loan expert to discuss your options. Our team can provide a complimentary, no obligation estimate that calculates your potential savings.


We’re here to help! Find a local expert today to get started.

Please ask your Mortgage Banker for costs associated with 3/2/1, 2/1 and 1/0 Buydowns, which may be paid by the seller and/or builder of the home. Only VA & Conventional Conforming Fixed Rate are eligible for the 3/2/1 Buydown. Only FHA, VA & Conventional are eligible for the 2/1 Buydown. Only Conventional & USDA loans are eligible for the 1/0 Buydown. Full documentation & property insurance required. Loan secured by a lien against your property. Fees & charges apply and may vary by product and state. Terms, conditions & restrictions apply, so call for details. All loans are subject to credit approval. Products and services offered by FirstBank. FirstBank Mortgage is a division of FirstBank. FirstBank Institution NMLS ID 472433. Member FDIC.