Loan Guide
2-1 Buydowns and Seller-Paid Rate Buydowns
Using seller credits or points to lower the interest rate for the first years or the life of the loan.
What to know
- A 2-1 buydown lowers the rate 2% in year one and 1% in year two.
- Seller concessions are capped by loan program and down payment.
- Permanent buydowns use discount points paid at closing.
Questions buyers ask
- Who pays for a buydown?
- Often the seller, as a negotiated credit. The cost is held in escrow and applied to your payments.
Official figures: CFPB: discount points. General information, not lending advice — confirm terms with a licensed loan officer.