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2/1 Buydown Explained - Get a Low Mortgage Rate & Save!
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How a 2/1 Buy Down Works
This kind of mortgage uses the seller's money (or the lender's) to credit you money towards lowering your rate temporarily in the first two years.
In year 1 your payment will be as if you had a rate 2% lower
and in year 2 your payment would be 1% lower
This saves you hundreds if not thousands in just the first two years of your mortgage!
This is great because as we head into a recession it's important to find creative ways to save money when buying a home.
And during a recession, rates typically drop, giving you the opportunity to refinance into a 30 year fixed at a lower rate before you hit the final rate adjustment on your loan.
This kind of mortgage uses the seller's money (or the lender's) to credit you money towards lowering your rate temporarily in the first two years.
In year 1 your payment will be as if you had a rate 2% lower
and in year 2 your payment would be 1% lower
This saves you hundreds if not thousands in just the first two years of your mortgage!
This is great because as we head into a recession it's important to find creative ways to save money when buying a home.
And during a recession, rates typically drop, giving you the opportunity to refinance into a 30 year fixed at a lower rate before you hit the final rate adjustment on your loan.
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