Temporary Buydowns — 2-1 and 3-2-1 Explained

Temporary buydowns are a popular way to ease into your mortgage payment — especially in today’s market.

? How They Work:

• 2-1 Buydown: Your rate is reduced by 2% in year one, 1% in year two, then returns to your full rate in year three.
• 3-2-1 Buydown: Reduced by 3% in year one, 2% in year two, and 1% in year three.

The cost of the buydown is typically paid by the seller, builder, or lender as part of your closing package — making it an amazing tool for homebuyers who want short-term payment relief without committing extra funds upfront.

At Bluegrey Mortgage, we’ll show you how a temporary buydown can fit into your overall strategy and make your first years of homeownership more comfortable.