What is a 2-1 buydown and is it worth it?

A 2 to 1 buydown is a temporary rate reduction where your interest rate is bought down by 2 percent in the first year and 1 percent in the second year, then adjusts to the full note rate for the remaining term. Either you or the seller can pay for the buydown at closing. It lowers your initial monthly payment and can make a home more affordable in the short term, but you need to be sure you can handle the full payment once the buydown period ends. Whether it is worth it depends on your budget, how long you plan to stay in the home, and the cost of the buydown versus other uses for that cash. The specifics depend on your situation and a licensed lender should confirm, and Jon can connect you with one.

Specifics depend on your situation and should be confirmed with a licensed lender. Jon can connect you with one: text (623) 826-0888.