What is a Buydown?
A buydown helps make home ownership more affordable by reducing your interest rate during the first year of your loan. For example, a 3-2-1 Buydown eases you into your new home payments by reducing your effective interest rate by 3% in your first year of ownership, 2% in your second year, and 1% in year three. Comparatively, a 2-1 Buydown reduces your interest rate by 2% in the first year and 1% in year two.
