Home loans: using the 2 – 1 buydown

The 2-1 buydown is a real estate financing technique…an attractive home loan provision whereby funds are set aside in an escrow account at the closing, for the benefit of the buyer. These escrowed buy down funds permit the home buyer to “buy down” the interest rate on their home loan…as the buyer’s interest rate is “bought down” for the two-year period.

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Author: Ted Ihde

Ted is a real estate broker, a real estate developer as well as co-CEO of Team With Heart.