A 2-1 buydown* functionally lowers a homebuyer's interest rate for the first two years of their loan, saving them money upfront and giving them a chance to refinance if interest rates drop during that time. This can be a big help to buyers who are ready to buy a home but are wary of purchasing when rates are higher. Mortgage professional Mike Swaleh explains the ins and outs of a 2-1 buydown and why it's such an advantage to homebuyers. 
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Disclaimers:

Mike Swaleh

NMLS #739145

*For a Conventional loan, the seller or buyer can pay for the buydown. For VA, FHA, USDA and Jumbo loans, only the seller can pay for the buydown.

The information in this podcast is distributed for educational purposes only. The information is not guaranteed to be accurate and may not entirely represent the opinions of Fairway Independent Mortgage Corporation.

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