What is a 2-1 Buydown? The Inside Scoop on this Mortgage Secret.

A 2-1 buydown is a temporary buydown through which a home buyer gets their interest rate reduced by 2% for the first year, then 1% off for the second year, then back to the original note rate the third year.

A 2-1 buydown mortgage is a great opportunity for new home buyers in a high interest rate environment that are looking for a more affordable payment in their first 2 years of homeownership. Once rates come back down to earth, there is always the option to refinance.