A two one buydown is a type of seller concession that lowers the calculated monthly payment 2% below the note rate for the first year and 1% below the note rate for the second year. Lowering your monthly payments for the first two years of your loan! In the third year, the payment is calculated based on the original note rate for the remainder of the loan.
Year 1
Save 2%
Year 2
Save 1%
Year 3+
Fixed Rate
Ease into your mortgage payments with added savings during the first 2 years of homeownership. Use the thousands you save upfront to turn your house into a home or save for the future.
If you sell, refinance, or pay off the mortgage before the end of the second year, the remaining buydown funds are refunded or applied toward the mortgage payoff.
With the temporary rate reduction providing a lower monthly payment, you’ll have increased purchasing power in any market.
*Total savings calculated for loan example shown
Year | Rate | APR | Monthly Payment | Savings |
1 | 4.5% | 6.95% | $2406 | $596 |
2 | 5.5% | 6.95% | $2696 | $306 |
| 3 | 6.5% | 6.95% | $3002 | – |
Loan Scenario: Conv 30yr Fixed – Purchase $500,000 – 5% Down
*Total savings calculated for loan example shown
Lock in your rate today before they get any higher!
NMLS Loan Originator ID
State of Colorado
CO LMB100008519
NMLS 130492
Company NMLS 384463
