How Does It Work?
The temporary 2/1 buydown lowers the interest rate for the first two years of the loan. The buydown funds are collected at settlement. Seller, builder, or lender may contribute to the buydown cost.
YEAR 1:
Interest rate is 2% lower during first year of loan.
Interest rate is 2% lower during first year of loan.
YEAR 2:
Interest rate is 1% lower during second year. In the third year, buyer makes payments at the Note rate and continues for the remainder of the loan.
Interest rate is 1% lower during second year. In the third year, buyer makes payments at the Note rate and continues for the remainder of the loan.
