Buydowns are very popular right now.  As it is a buyer’s market in many parts of the country, sellers are willing to negotiate with buyers to buydown their rate.  There are 3 different types of temporary buydowns:  3/2/1, 2/1, and 1/0.  The numbers represent how much your rate is reduced each year.  For example, if you have a 3/2/1 buydown and the rate is 6.5%, the rate in the first year is 3% less and would be 3.5%, in the second year it is 2% less and would be 4.5%, in the third year it is 1% less and would be 5.5%, and then 6.5% for the remaining term of the loan.    

We have helped many borrowers close loans with buydowns.  Before you buy, contact us and we can help you pick the best option for you.