What is a 2/1 Buydown?  How does it work?

Buyers doing a 2/1 Mortgage BuydownAs this real estate market becomes a little more balanced between buyers and sellers, we all need to shift our focus on the elephant in the room:  High interest rates.  So what is a 2/1 buydown, and how does this not only help buyers, but also sellers in selling their house?

This is actually an amazing tool for sellers (as a home selling marketing plan) to offer buyers when selling their house.  You can take a look at the numbers below, to see how much it would cost a seller, and how much savings the buyers would realize.  It's actually quite astonishing just how much someone saves in the first and second year!

A 2/1 buydown is a type of mortgage financing arrangement where the interest rate on a home…

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