A Temporary 2-1 Rate Buydown: Explained

Posted By Gracen Tilton @ Nov 8th 2022 3:19pm In: Charleston SC Real Estate

As mortgage rates hit 7% and above, loan officers are seeing new borrowers increasingly interested in options that can help reduce their initial mortgage payments. These borrowers are hoping that rates will decline enough in the next few years that a refinance will bring their payments down permanently. 

Options for borrowers include temporary rate buydowns and down payment assistance programs. Generally speaking, a buydown is a real estate financing technique that makes it easier for a borrower to qualify for a mortgage with a lower interest rate. A 2-1 buydown can be paid for by the homebuyer themselves, or by the home seller; who can pay for it as a seller concession.

Gracen Tilton | Marshall Walker Real Estate | 582 Rutledge Avenue | operations@marshallwalker.com | 803-549-6318 

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