2-1 Buy Down Program

The 2/1 Buydown Seller Concession

The seller’s housing market is quietly shifting to a buyer’s market, with seller concessions making their 2022 debut. Higher interest rates are taking many buyers out of the market, leaving more homes up for grab with less competition. This shift has sellers lowering their prices and offering concessions to get their homes sold. A popular seller’s concession is the 2/1 Buydown because it reduces the buyer’s interest rate by 2% the first year and by 1% the second year for a very reasonable seller concession.

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Comparing Seller Concession Options

 In the scenario below, the seller opts to drop their price or offer a temporary 2/1 buy-down. The temporary buy-down option costs a lot less to the seller while providing a significant monthly savings to the buyer for the first two years.

Interest Rates and annual percentage rates (APR’s) are hypothetical only and based on a credit score of 760 at our current pricing as of August 19th, 2022.  Hypothetical secenarios are meant to be informational only, do not factor in borrower information, and are subject to modifications related to property type, occupancy type, loan amount, loatn-to-value ratio, credit score, and other variables.  Monthly payments are principal and interest and do not factor in additional variables such as mortgage insurance or property taxes.  Terms and conditions apply.  Not all borrowers will qaualify.