Our 3/2/1, 2/1 and 1/0 seller-paid 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 with fluctuating interest rates.

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. Loans may be eligible for refinance every six months.

Benefits of a Temporary 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.

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