Understanding the 2-1 Interest Rate Buydown

Understanding the 2-1 Interest Rate Buydown

With rates higher in 2023, buyers in Newton and Needham are looking for relief. The '2-1 Buydown' has become the most popular tool in our toolkit.

How It Works

Year 1: Your interest rate is 2% lower than the current market rate. Year 2: Your rate is 1% lower. Year 3+*: The rate returns to the fixed amount for the life of the loan.

The Win-Win

Often, we can negotiate for the seller to pay the cost of this buydown as a concession. You get a lower payment, and the seller gets their asking price.

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