10/14/2026
Let’s make mortgage rate buydowns simple. 🏡
Think temporary vs. permanent.
A 2-1 buydown temporarily reduces your payment for two years. Your payment is based on a rate 2% lower in year one, 1% lower in year two and the full note rate beginning in year three.
A permanent buydown uses discount points paid upfront to permanently lower your mortgage interest rate for as long as you keep that loan.
Depending on the loan, buydown funds may come from the seller or builder, while permanent discount points may be paid by the buyer or potentially covered through eligible seller credits.
There are a lot of moving pieces, so don’t worry about figuring it out yourself. As your local lender, I can compare the options and show you what each one could mean for your payment.
