Buying

2-1 buydown

The payment in years 1, 2 and 3+, and what the buydown costs — usually a seller or builder concession.

The permanent rate on the loan — you qualify at this one. A typical recent 30-year rate. Edit to your lender's quote.

What the buydown costs — and saves

$8,040 buydown cost

Year 1 payment (at 4.69%)
$1,813/mo
Year 2 payment (at 5.69%)
$2,029/mo
Year 3 on, the note rate (6.69%)
$2,256/mo
First-year savings
$443/mo

The $8,040 is the sum of every month’s difference, paid up front into an escrow that tops up your payment. That money is almost always a seller or builder concession written into the contract — not your cash. Refinance or sell early and the unused escrow usually goes to the loan balance.

See homes where the seller offers concessions →

Live listings whose agent flagged seller-paid concessions.

We’re not a lender. A temporary buydown does not change the note rate or what you qualify for; a permanent buydown (points) does — compare on Points vs. down payment. Concession caps (3–9% of price, by loan type and down payment) limit how much a seller can pay. Your lender prices the escrow exactly.

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These are the lenders Allen works with. For any lender you’d like to talk to, tap Make introduction — we’ll make the introduction for you.

Allen Markel is a licensed Texas REALTOR®, not a mortgage lender or loan originator. He does not quote rates or terms and does not decide whether you qualify — only a lender can do that. Introductions are a courtesy; you choose who to work with.

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