What Is A 2-1 Buydown And How Does It Work?

The 2-1 Buydown is a loan program that helps you lower your first 2 years of mortgage payments by using a credit from the seller and the buyer. I cover the details of the 2-1 Buydown in this video, if you should get one, and the alternatives to a 2-1 Buydown.



TOP RESOURCES

0:00 2-1 Buydown Loan Requirements
0:12 In this video
0:29 Overview
3:19 How it usually works
4:29 2-1 Buydown Calculator
9:06 Basic Requirements
11:26 Something to consider
12:13 Alternatives
13:44 ARM - Adjustable Rate Mortgage
14:07 Should you use it?
16:57 How to get one?

Kyle Seagraves - NMLS 1701021

[marquistprice]

As a realtor, this is awesome man, Kyle! Thank you!! You helped me buy my house years ago, and now you're helping me, help my clients! Truly appreciative brother.

[snore-lax]

its like sitting down with a lender in a relaxed setting. instead of all the other obnoxious youtubers. what a huge relief. and so much easier to absorb the information. truly thankyou.

[ebsjallow]

This is such a great and precise explanation. I am dealing with my lender and agent but they couldn’t explain it to me to a level that I understand. So I came to you. And it paid off. Thanks so much for this.

[JavyVidana]

Hey Javier here with Win The Home You Like, thank you for this video. You are the best of the Kyles.

[erinoliveros]

Hi Kyle, new follower here! I work in Escrow and we have been seeing these in transactions a lot lately. I didn’t really understand how they work in comparison to a seller credit for closing costs or loan points so this was good information to learn, thank you!

[ramonmolina]

Just watched your video since im getting a new construction home. they offered a temporary buy down, but id rather use the incentives towards closing cost, that way I can have more money in my bank account. thanks for being specific. I think alternatives is actually a better route.

[Suegeeeee]

Thank you. You're a great teacher. I'm currently studying the finance portion for my real estate exam, and my eyeballs were floating. Great job helping me understand! Will subscribe for all other questions I have

[tinainnca]

Kyle, I am not new to the two – one by down, but the addition of the calculator is fantastic. Thank you. As a realtor, this will be a much easier conversation in concept with my buyer

[samynashabeh]

Thanks for the great content! Plain, simple, no BS.. Just subscribed!

[lisarobinson]

Yeees you just broke this all the way down for me!! I swear you are one of the best channels on YouTube ❤

[niteshsinghvi]

What a comprehensive explanation. Appreciate all the effort you put into these videos.

[seanpetersen]

You only discussed if the builder/seller buys this. No discussion on if you yourself, the buyer, are looking at this option 😊

[latonyasaffor]

You are a wealth of information! So easy to understand...thank you very much! As a simple person I had no idea any of this existed. Again, thank you so much for your

[thehomeguy]

First-time watcher here...

Great explanation! You did a MUCH better job explaining this than others.

As a REALTOR, my issue with these type of loans is: asking the seller to pay for it. In many cases, buyers are already asking sellers for closing costs assistance; now buyers will be asking for what is essentially a rate buy down too? That seems like a hard sell to me.

[alexbearhayden]

GREAT VIDEO including TONS of detail! Much appreciated!

[proudmamasvlog]

We just bought a house our interest rate is 6.99% too much for us. We asked the Lender how we can lower our monthly mortgage she told us 2/1 buy down but it depends to the appraisal price of our prospect house. So it turned out higher than the selling price. So what the lender did she raised the price of the house it means the 2/1 buy down came from our own pocket not from the seller. The seller doesn’t want to lower their price. We studied it and we found out 2/1 buy down is not good especially if added up to your own loan. We just bought the house with 6.99% instead of a buy down.

[miladzadeh]

Retail lender here: we allow our clients to fund the temp buy down themselves, receive as gift or have seller/builder pay for it

[tabbarae]

Thank you so much for your video. You've explained it so clearly. If this is a viable option for any of my clients, this is a video I will use to help explain it to them. Great job! 🙂

[XxbobryanxX]

Hi, secondary markets analyst here. In regards to the basic requirements; 2-1 buydowns aren’t restricted to 30 yr fixed terms only, to my knowledge. we have aggregators who purchase buydown loans for ARMs as well as other term lengths. (Though in fairness, we haven’t locked any 2-1 buydowns for anything other than 30 yrs)

[hackedaccount]

Thank you for awesome piece of information!