What Is a Buydown and Should You Use One?

Want a lower mortgage payment upfront? A buydown might be the answer.

💡 What Is It?
A buydown is when the seller (or buyer) pays to temporarily lower your interest rate for the first 1-3 years.

🔢 Example: 2-1 Buydown

• Year 1: 2% lower rate
• Year 2: 1% lower rate
• Year 3+: normal rate resumes

✅ Pros:

• Lower initial payments
• Easier transition into homeownership
• Can help buyers qualify

⚠️ Cons:

• Temporary savings
• Requires upfront payment
• May not be worth it if you’re moving soon

Every situation is different. I can help you (or negotiate with the seller) to see if a buydown makes sense.